Heres team xbox's story on this as well.
Capcom producer and Lost Planet creator Jun Takeuchi claimed his team was "in tears" as it made hard decisions to cut "major" content in their upcoming sequel Lost Planet 2 due to the limitations of the Xbox 360's DVD-9 disc format (as
reposted by Kotaku via a
Japanese site). Takeuchi states that "the content that was cut was significant," and that the team found themselves "wrestl(ing) with disc space."
This isn't the first (or likely last) time a developer has complained about the 360's disc format. The most famous statements came from iD and John Carmack regarding their in-development open-world shooter
Rage; Carmack
claimed that the Xbox 360 version of the multi-platform title would likely look worse due to more aggressive compression if forced to ship on two DVDs, rather than 3. EA/BioWare's recent hit
Mass Effect 2 shipped on two discs in January