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Modern games aren't 700Gb, there are a very few very large games. One of them is large on purpose to make to delete other games.

Updates for games are large because they aren't "just updated files", but a giant blob that can't be rearranged since it's optimized for loading order later.

Giant self-contained deploys like that are bad because their use case is CLI/GUI tools shipped to the end user. To give you context: my /usr/bin is ~900 binaries and total size is 109mb.