Username2324:
Not all forms of compression are lossy. :p For instance, the demo scene (as mentioned earlier) has produced some amazing compression ratios. For instance, try kkrieger:
http://produkkt.abraxas-medien.de/kkrieger
It's a whole 1st person shooter in 96k. Data, engine, everything. Sure, if you read through the information about how it was implemented, you'll see that it's not the same method used by most modern games. But still, the results are extremely impressive.
What I think you should take away from this is that extremely high compression ratios are certainly possible without loss, whether it's algorithmic compression, hand encoded images (as in many demos) or procedurally generated data. It just takes some creativity and developer time. :p
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