At the QuakeCon 2008 keynote, John Carmack, game designer and co-founder of iD software, mentioned the upcoming first person shooter - Rage. Carmack also commented on the storage problem related to Microsoft's XBOX 360 platform.

Carmack believes compressing Rage into two XBOX 360 DVDs would result in loss of content and make it look worse. Also adding a third disc would shoot up royalties. Carmack is looking to
Microsoft to either introduce a concession on DVDs or increase storage capacity on XBOX 360. Carmack also denied any move to distribute digital copies of Doom 4 or Rage online.

Meanwhile, Sony's PS3 might jump ahead in competition with its Blu-ray discs. Rage will also be available in DVD and Blu-ray discs for PC and Mac platforms.

Now all eyes are on Microsoft to see what they'll do to address the storage issue. Despite the fact that compression technologies in optical media have phenomenal capabilities, its actual application today is uncertain.

Here's an interesting collection of Carmack's keynote address gathered by Play.tm website. See Rage's extended trailer here.