So, this is actually something that is in flux right now, and the tech is shifting towards loading from storage directly into memory, like the cartridge days back in the 1990s (Nintendo 64, etc). This is in flux to the point that it's really the
new games from the past year or two you'd want to test.
What caused this shift is that the current generation of consoles shipped with SSDs. The PS5 and Xbox Series X/S both shipped with NVMe storage standard. Games going forward are designed with this baseline in mind.
The reason this affects game technology is because it changes the tradeoffs. You always wanted assets to load quickly, since forever. The amount of time it takes to load an asset has two parts that contribute: I/O time and the CPU time spent decompressing.
In the past, storage was more precious and slow, so your game would load much faster by compressing the data. NVMe users would never see worse loading times than SSD or HD users, so you'd just compress everything, and the NVMe users would see a slight benefit.
Now that NVMe is a reasonable minimum requirement, you can ship a game that uses uncompressed data on disk. People with NVMe see faster load times, and people without them see slower loading times, possibly MUCH slower.
When I say "uncompressed", I just mean "uncompressed, relative to the runtime representation" which may still use compression, like ASTC.
The situation with the Nintendo 64 is remarkably similar to what's going on now... because the Nintendo 64 had such a fast storage system, games could "easily" load assets on the fly. The system had only 4MB of RAM, which seemed like a very severe limitation, but you could make very expansive areas in games by streaming assets from the cartridge while playing. It was fast enough that you could load some assets from the cartridge into RAM, and they would be available to render during the same frame! These are the kind of technological changes that are going to happen inside engines, now that NVMe storage is more common.
I put "easily" in quotes because nothing about Nintendo 64 programming is easy.