"By year 2, PS2 games would hit 4800 megabytes (like FF10). This is year 3 of the PS2, and already the 8500 megabyte DVD has been maxed out by Xenosaga."
Keep in mind that the larger games of the current time are generally laden with FMV. Xenosaga is not actually filled with 8.5 gigabytes of pure gameplay- FMV, I'm sure, takes up a huge portion of that size. BUT, since the quality of console graphics has risen exponentially, there's been less and less need for FMV. In a couple generations, no one will use FMV- it'll be more expensive, take long, and produce results that are little better than in game graphics, if at all. That'll free up a TON of space for actual gameplay, and when the day coems thyat a disc is filled with more than 8 gigabytes of pure gameplay is the day we spend literally years playing the game.
Anyway, I don't know if anyone's mentioned this, but has anyone heard of Panasonic's new venture? They're said to be designing a disc that will hold roughly 10 TERAbytes of information (that's about 10,000 gigabytes, or about 10,000,000,000,000 bytes). They're not even planning on maknig availalbe to consumer for like 10 years, but I thought it was interesting. Supposedly it uses soem type of holographic layering device.