To give you a definitive answer, this author tested three games using NTFS folder compression and a community-built "experimental compressed ISO loader" (abandoned since 2021).
: This is the story of users trying to save disk space by downloading tiny, "highly compressed" installers (often found on shady sites) and the technical struggle (or tragedy) of getting them to actually run. The Optimization Quest rpcs3 highly compressed games work
RPCS3 is an open-source PlayStation 3 emulator that runs PS3 games on PC by reimplementing the PS3’s Cell CPU, RSX GPU, and system services. “Highly compressed” PS3 game files typically refer to game dumps that have been further compressed using tools or archive formats to reduce download size. These compressed packages can work with RPCS3 when handled correctly, but there are technical and legal considerations. To give you a definitive answer, this author
