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Adinnieken said:

From what I read, there is 50GB of Flash Memory involved.  So in much the same way a hybrid HDD works, data would be streamed from the media, to the flash memory, then streamed to the HDD.  Since the application (game) has to read the ODD, the console can, during the same read process, copy the content to the flash memory, than at a later point write it too the HDD.  It requires the data being optimized, so that reads are quick and it requires that the application (game) be designed in such a way that the content necessary for the game to be initially played is of a reasonable size. 

A lot of current generation games use on-the-fly data reads with little to no impact on the game being played.

Sounds interesting. However, none of the rumors so far have said anything about any GB of flash memory. Gonna be an interesting next few weeks/month.