The documentation says “Steam compresses files while they are being downloaded by users, so initial download times will not be affected by your game’s .pak file being compressed. However, Steam’s differential patch system will work better with uncompressed files. Compressed .pak files save space on the customer’s system, but will take longer to download when patching.”
Is it possible to test if having the pak file uncompressed can reduce the download size of updates? If it does, we could have the loading benefit of pak without the current download update size disadvantage, and wouldn’t need to update UE4 to split the pak into multiple paks.