That's what it means, same game made smaller at the cost of quality. Unless you're a quality freak compressed is fine.i just asked this now cause I'm tired of downloading bigger files because i never know what compressed is
When I look at two photos with a size difference of 4 times from the photos you posted, I can't really see any difference in quality! For example, I looked at the photo with the size of 1300 KB and compared it with the photo with the size of 272 KB and I really don't feel any difference!Compressed versions of games take the files and make them smaller by sacrificing their quality. When images are compressed to decrease their size the level of detail in an image is sacrificed.
You may not be able to notice the difference or not care enough, up to a certain level.
Image Examples Below
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