THe problem with compression, is you have to uncompress it. The more you compress, the more CPU time it takes to uncompress it. I personally call BS on the 100x lossless compression thing, I mean, if you have a solid color image, sure. But if you have a full color photo with lots of detail, you are not going to get 100x more then we get with traditional methods. YOu could get 100x better then a RAW format, but a JPG is close to that anyway.
Anyway, the problem is the HD. MS needs to get rid of the Arcade, and just sell systems with HD's. They should then offer the 20gig for a VERY low price, or the next game that would want to require a HD should come with a rebate for the smallest offering.







