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What is the difference between Package and Packed File?

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What is the difference between Package and Packed File?

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A Package (the File on your Filesystem with the Extension .package) contains several Packed Files. Those Packed Files can have diffrent Types (they can be simple jpeg Images, or Xml Files as well as more complex binary Filetypes). Some of the Packed Files are compressed, so you could say a Package is something like a very specific .zip File. The Format used to store those Package Files is called DBPF and was created by Maxis.

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