DVD is not SD, it's ED (enhanced definition, 480p like the Wii). But you can store HD content on anything, even a floppy disk.
In any case, games are not like movies. The images you see are dynamically generated, only textures and stuff like that is actually stored as an image. The rest is generated by the CPU/GPU according to the program code (which is often the same size no matter the resolution of the graphics it generates).
There have been PC games with HD resolutions (or higher) stored in DVDs and even CDs for a long time.
My Mario Kart Wii friend code: 2707-1866-0957







