Glen Watts1:The PS3 generally doesn't need to do multi-disc releases, you can get a lot on a blu-ray.
The 360 has a few multi-disc games, usually the big RPGs with fancy pre-rendered cinematics (those things take up a lot of space). You do a save at the end of the disc, then change disc and boot the game again, and load the save.
I've heard talk that there might be 360 titles coming along that use two discs, where one is just data that you have to install to the hard drive if you want to use it. Extras, rather than core game elements.
It would be VERY interesting to play with that idea. But then how would the size split be made? You could simply say that the Code goes on one disc with the Data going on another, but the Code is usually very little of what makes up a game's size.
I have always liked the idea of caching games to the HDD but then you start affecting streaming times.
You could make a game that has no streaming issues if you are allowed to use the HDD (allowing the developer to make faster vehicles, less loading screens, etc), but there are rules in place that require the game to be played on the most bare bones system imaginable. Meaning no HDD, Profile, MU or Internet Connection. So by Microsoft's TCRs I would be unable to make a game that
requires the user to have a harddrive. This means I now have to hanicap my game to run off the disc rather than the HDD...sad panda.