So it'll be like when you're watching a video I assume? That's pretty awesome. Will be useless for those with a shit internet connection but for me it will be VERY useful.

I think it is something like Diablo III. It downloads the first chapter or something like that, and while you are playing, the system downloads the rest. So it isn't instantly like OP said, but way better than downloading everything first.

Deyon said: Whats left for the next Xbox?

A big magnificent price hike for live :p

Of course it works like that. To run a game, the code and data has to be in the memory. If the downloaded code doesn't have the code to continue playing, the game would stop at best, and crash at worst. This was simply marketing speak to announce something that cannot work, not even in theory. Either you have the code (and data) or you don't.

An awesome feature considering how long it takes to download and then install games now on PSN. I expected them to fix the download and then install issue PS3 has, this takes it one step further. Personally though depending on energy usage, the suspend and resume feature is way better. That's awesome.