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It was largely a joke: 480p images with an 8bit color depth and animations of 5 to 10 frames each may or may not work, in a literal sense, but even if it did it wouldn't actually make sense. I can see someone trying though. And then everybody complaining about the shitty quality. 

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Fuck me sideways... 850*480 (480p in 16:9)*1/2(average compression for a lossless image)*30000 (approx number of images in the game)= ~6GB. That can't be right.