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It's partly hardware; the PS4's hardware zlib decompression plays a role. I believe Xbox One has something similar?they have noted this issue, it's just software:
http://www.gamespot.com/articles/microsoft-xbox-one-install-times-need-to-improve/1100-6417201/
MarkCerny said:"So, what we do as the game accesses the Blu-ray disc, is we take any data that was accessed and we put it on the hard drive. And if then if there is idle time, we go ahead and copy the remaining data to the hard drive. And what that means is after an hour or two, the game is on the hard drive, and you have access, you have dramatically quicker loading... And you have the ability to do some truly high-speed streaming."
To further help the Blu-ray along, the system also has a unit to support zlib decompression -- so developers can confidently compress all of their game data and know the system will decode it on the fly. "As a minimum, our vision is that our games are zlib compressed on media," said Cerny.