Showing my age here, but I remember how enormous standard density 3.5" floppy disks seemed when I got my first Amiga, with their amazing capacity of 720 kilobytes. This sort of capacity meant you could fit huge (by those day's standards) graphics files on disk and really changed the face of gaming.
These days games are millions of times larger, typically in the order of four or five gigabytes. The majority of this size is often down to large media files; textures and models take up a significant amount of space. So when I heard about .kkrieger, an FPS crammed into 96 kilobytes of space, I was understandably skeptical. But having checked it out I'm stunned - my poor laptop can barely cope with the graphics, but it shows the power of procedurally generated graphics - code is used to build up media at runtime rather than storing it all statically with the game. Okay so it needs lots of support in the form of an OS and DirectX, but as the makers say few Windows games don't.
Check it out - this sort of thing may also have big implications for the distribution of machinima and other video content; entire graphics engines could be encoded into a small amount of data and sent at the beginning of a streaming clip. Movies could become truly interactive and allow you to view them from any angle and any detail you liked. The potential implications of this technology are staggering.