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The hardware in Xbox 360s is not capable of reading HD DVD or Blu-Ray or any other type of new disk so the gameas will still be on dual layer DVDs. Removing the 1GB partition would allow developers to use 1GB more space on the disk and does not mean that the disk will be 1GB bigger as a lot of people are thinking. Another speculated issue is that the layerbreak might have been changed and that will need a little investigating to find out if that is true or not. XGD3 disks have tweaked this partition to make it much smaller, or possibly removed it entirely, because Microsoft have told publishers that they will now be able to make use of an extra Gigabyte of space previously reserved for this partition.
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This partition has the video that you see if you put the disk into a DVD player, a dashboard update and various anti-piracy measures. XGD2 disks contain a partition roughly 1GB in size. Ripping the disk will need a new algorithm for reading the disk. These new disks pose 3 major problems: Ripping the disk, burning the disk and running the disk on the 360. Now the pirated scene is on hold as all new Xbox games will come on XGD3 disks.
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It used to also be necessary to booktype the disk to DVD-ROM but that is not needed any more. Prior to XGD3 the main points of making back-ups of 360 games was to use good quality DVD+R DL disks – most preferring to use Verbatim disks – and the correct layerbreak of 1913760. Microsoft has unleashed XGD3 on the pirates! It is a new form of copy protection and has yet to be cracked.