Wow how incorrect could you be? Look up direct storage and its hardware decompression. I also cant believe anyone agreed with you on that
Also, no this isnt about drive storage, as any device with a modern cpu can store & decompressed files. Its about compression before, & decompression after, sent through the io to save on overall io bandwidth.
There are reasons xbox games are larger and i think it has more to do with games that can run on older xbox hardware and quick resume then what you are suggesting.
Xbox has tech to reduce game size but its not widely used yet. Sony probably enforce it knowing they have a smaller storage ssd that can fill up quick.
Note: Also I'm sure to see a reply about 0% CPU usage instead of a fraction of of a CPU being involved (which is basically a non factor when the CPU is clocked higher in one machine compared to the other). Imperceivable due to latency in other areas no doubt.
Both can do hardware compression/decompression indeed, but they use different compression methods. So, they are technically different and can have different output, depending of the situation. (like does game need to have xbox one support, ps4 support, use all methods or not)
Sony pays license for kraken so every dev can use it for free, but they can also not use it.
Future will show, if game sizes between systems get similar. Not a big deal.
The topic about losing 100-200 per system is kind of surprise, big numbers this far on the gen IMO.
I didn't really like xbox until this gen, now that I have series x and ps5, I think they are both nice and really close. Different GUI and controller are the biggest differences, games run similarry on both.
But I would have assumed, that MS can sell them on profit or +-0. controller is probably cheaper vs. playstation, series S should be cheaper than ps5de, series x could be bit more expensive.
But 100-200$ loss is a lot, if PS5 is already profitable.
And Series S struggles to sell (in some countries), here used systems that are basically like new go low as 100€.
So if they need to drop the price to 150-200€ to make them sell in the future, it would be huge losses unless they can make them much cheaper by then.