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the easy way is just to compress the FMV's like they were on PSX.

The reason why the PC ones was bigger because they doubled the resolution of the FMV's. And probably uncompressed textures that still looked bad.
The PSN version was only 1.2 gb. if I remember.

The textures and mods that made it like 8gb was done by fans.

That said, people always translate tweets or whatever wrong. So what he actually said probably (hopefully) makes more sense.