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There are no technical limitations - I don't get why everyone jumps to this. This is PS1 era, slick and fast platformers were everywhere really.
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I too always wonder why this is often given as an excuse for various aspects of AO and AE's design. Technical limitations on a 2D Sidescroller? I know they talk about memory being an issue for certain things, but other than that I doubt the PS1 had too much trouble running games like these.