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@Kaffe@chitter.xyz there've been a few moves in that direction, none of which succeeded
there's a certain size limit; if video games were distributed on microsd cards for instance you'd have people losing them all the time, and there's very little room to put any information on what the game is on it too
You could definitely go smaller than a CD though. somewhere between a compactflash card and a 3½" floppy disk would be a good size i think
-F
@Kaffe@chitter.xyz oh there's also the fact that a lot of video game consoles also play dvds and cds. that was actually a big selling point for the ps2 and ps3 (a used ps3 is still one of the more affordable blu-ray players afawk), but it's not really relevant anymore. but that's held on; people kinda expect to be able to play dvds in a video game console these days (at least i think they do) because of sony and microsoft making consoles that could do that
so if they need an optical drive anyway...
-F