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JEMC said:

Well, better quality textures take a lot of space. If only those megatextures from the id Tech engine were more common...

Either that, or more efficient texture compression, like Nintendo has been doing for decades now (originally to get the textures into the restrained space of a cartridge compared to optical media).

Or they could actually calculate some textures. Has the advantages of being just a couple bytes large per such texture yet having very high quality. Just have a look at .kkrieger, those were unbelievably sharp textures for the time. 

Keep in mind that while the whole game fits into an 96kb executable, once all the compression and texture calculations are done it takes over 300MB of memory to actually run the game, and it needed a fairly beefy PC at the time to run smoothly, so using such calculated textures may need more powerful hardware - though with the performance of modern PCs and SSDs, this may not be much of a factor anymore.