From Software producer Masanori Takeuchi, who's been working on Enchant Arm, a role-playing game slated to be an Xbox 360 launch title, said developers will also be running into issues of storage space in the next generation. While the Xbox 360 is a next-generation console, Microsoft decided to equip it with a normal DVD reader rather than give it HD-DVD or Blu-ray reading capabilities.

"The volume of data in Enchant Arms won't fit into a single DVD. It's an RPG, so we're thinking it would be inevitable that we release it on two discs," says Takeuchi. "But to be honest, that's even looking grim."

In terms of programming issues, one of the strengths of the Xbox 360, similar to the current Xbox, is the ease of porting Windows programs to the console. But surprisingly, porting programs isn't completely hassle-free, says Square Enix programmer Yasuhiro Yamamoto of his experience with Final Fantasy XI. "Windows PCs and the Xbox 360 have differences, so it'd be a lie if we said there aren't any headaches [in porting programs]. Sound is one example. The Xbox 360 uses a proprietary format, and it gave us a little bit of confusion. A bigger point is the CPU. Windows uses Intel, while the Xbox 360 uses the IBM's PowerPC. Under certain conditions, the two companies' CPUs will display programs in totally opposite ways. Flipping that around took us some time."