
The interview, conducted by ThreeSpeech.com, says the space isn't being consumed by non-interactive videos. This has been a big concern by potential buyers. Developers have a great deal of additional space - fill it with fluff. Not true says Harrison.
"Already, at our launch titles, we're getting up close to the 25GB limit that we have on our Blu-Ray discs this year. Next year we'll raise that to 50GB, and I'd expect that we'll be getting close to that in the fairly near future as well."

Where is that space going? Apparently, PS3 games require the extra storage space due to the overwelming consumption of data that is needed to feed the processor. The amount of high-resolution detail in graphics and the 7.1 audio consumes more storage than other lower graphic/sound quality game consoles.
The PS3 claims to have a processor and total infrastructure to push the best graphics seen on a console (or probably a PC) to date. This requires extremely high textured graphics for models and animation and sound to match. Nobody wants to spend money on a set of graphic processors and computer processors without having media to match the capabilities, right?