currently in sunny 2007 we have not really needed anything over 9GB, maybe Lair did with doing full 1080p, but the rest of the ps3 games only went over because they used uncompressed sound.  My whole theory is if you got the space why compress the sound, so they did the right thing.  however, the killzone 2 developers said that they needed blu-ray, rockstar said they needed blu-ray for LA Noire, it appeared Bizzare ran out of space for PGR4, or at least would have welcomed and utilized blu-ray if they had it.  I think by 2009 standard ps3 games will take up much more than 9GB and 360 is going to have a bunch of multi disc titles, but some games might be kept back from the 360 simply because the style of the game doesn't work with a mutli-disc concept (gta, oblivion, etc.)

Well my final say in it all is whether or not they "need" the space is one thing, they could probably work around it, but hell, if you dont have to, why? Take stranglehold for example, didn't the ps3 version come with the movie already on it? Needed? nope, far from :D but still badass. I say the developers shouldent TRY to occupy the space, but if they feel like they need to I'm all for it. If they feel like giving me uncompressed audio, multi languages, more CGI, More needless detail in areas, by all means go ahead :)

 Post of the thread Kn

 Capacity was not the problem with the carts. The game could have fit on two or three N64 carts, if they were willing to compress the hell out of the data, as was done with the N64 version of RE2, and all the voicework with Conker. The problem was cost. All that compression required a lot of enhancement chips, and that would have made the game prohbitively expensive (RE2 and Conker came a few years later, when costs were greately reduced). There would be no way Square could sell the game at $60. It would be sold at a loss, which is unthinkable for software. They would have to sell the game at a higher price, and cut into sales (the high cost of Chrono Trigger presaged this).

CDs, on the other hand, cost pennies. So Square could put the game on a dozen discs, and still have a much better profit margin.

With the 360, the lower capacity is negated by the large profit margin of the discs. Even if they have to leave out content, not making content costs nothing, so there is still the profit margin. 

I thought they could use disk swapping basically giving unlimited storage space in essence.

I remember FFVII was across several cds.

Couldn't the same still apply?