silhouette
Regular
I was considering that pennies a disk at millions of disks adds up quite a bit, and if such a game will only require a third disk because "developers lose upwards of 2 gigs of space per a disc because of information Microsoft requires developers to put on the discs" then I can see why they would want to persuade MS into covering that cost. After all, that alone makes their engine less atractive to license, where as the extra development costs put into optimizing their engine for the PS3 does the opposite.
However, having seen the acutal interview on 1up now, I see he does specificly mention "an extra licensing fee per-disk".
He mentioned that at quakecon2008 keynote speech very clearly