Cut scene videos saves a lot of loading time, development and space if you need to do unique visuals that won't be reused in the game.
For example, you don't want to load a whole new level just for showing the bad guy doing something far away and then cutting directly back to the current level of the game. It's a pretty common storytelling device.
With that said, fuck MS for not making the HD standard and using the first disc as install, last time i checked two DVDs still are a lot cheaper then one blu-ray.
This post has been edited by Nemo[: Oct 23 2007, 11:15 AM