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"And you would get nowhere near anything like a Final Fantasy running on it."
I guess he was talking about the CGs? Yeah, that would be a problem because of the lack space (even though that didn't stop Capcom from using all RE2 CGs in their port for the N64)...
But running the game itself? C'mon, even half of a N64 could run any PS1 with a better framerate than the PS1 version. All PS1 one are freakin' ugly when compared to N64 games.