Allegorithmic, the creator of a procedural texture production tool called ProFX, announced that NCsoft has licensed its product. ProFX produces highly compressed textures that are "tiny, typically a few kilobytes" in size. Those textures are expanded and generated on the fly from that data by the system's processor as needed. That means file sizes are very small, but visual quality is maintained. The tech is therefore popular with companies developing games for the Xbox Live Arcade, the Xbox 360's digital download marketplace for bite-sized, casual gaming experiences.
NCsoft plans to use the technology in the future development of MMOs for PCs and the PlayStation 3 console. That choice might imply a comparatively small scope for those projects. ProFX is perfectly suited for games downloadable through the PlayStation Network store (Sony's answer to the Xbox Live Arcade), so this is another clue that NCsoft's PS3 games might be PSN releases instead of AAA Blu-ray titles.
It's by no means definitive though; NCsoft might have just been looking for a way to bring down patch sizes. So move along now!