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Uncompressed audio tracks may have been necessary to get acceptable performance. e.g. GTA 1 came with some PCM tracks on the CD. If you didn't like them, you could pop in a different CD and get different music on the radio in-game. Playing mp3's was, in the early to mid-90's, actually pretty intensive. There were still a decent number of 386's around that could barely run a mp3 player in a Linux console-only setup. You needed a 486 or better to even think about playing mp3's with a full graphical OS running, and probably a Pentium before you have enough CPU left over for the rest of a game.
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Even as late as in 2008 I had such a slow machine that when I had to use NetBeans and I wanted to listen to music at the same time, I'd just play music CDs with headphones plugged into the headphones port of the cdrom drive :)
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Back in the day, my 200mhz Pentium remained just-barely usable while listening to WinAmp, but there was noticeable latency.
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Yeah, I remember an mp3 rating >50% CPU time on one of those early pentiums we had
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Yeah. Seeing that made me very happy, being the proud owner of a dual CPU (no, not dual core!) AMD K6. :-)
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I never noticed any problems, but I did have the mmx version. It wasn't fast but never did the playback stutter , even with dreamweaver and several browser windows
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For reference: I had a 486 DX2 66 MHz, and I played MP3s by decoding them in batch to PCM and then playing that as it couldn't really do that in real time. Perhaps only if you didn't do anything else and the MP3 was low bitrate enough and ideally mono.
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MP3 decoders have, thankfully, gotten faster since the 90s. But yes, a 66MHz is pushing it indeed.
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CDROM and 386 would have been an odd combination though?

My 486 had a single speed CDROM but it only had a 500mb and a 100mb hard drive, so still wasn't playing mp3s

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And don't forget to engage your "TURBO" button, to make the playback slightly better!
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The turbo button was always on, or it should be. you would turn it off to downgrade your pc to run at the speed of the original IBM PC in the mostly vain hope that whatever old game that was programmed for that exact speed would start to run right. It was slightly be fore my time(we had a 286 with the button, but I was to young to be curious about it) Would the pc take the speed change without problems or was it best to reboot? I sort of hate whatever marketing genius figured out to label it "Turbo" instead of "Slow" But they definitely earned their bonus.

The real weird one from that era was the 7 segment led MHz displays that were popular in the 386/486 era. It was weird because the the chips could not change speed in the first place. And I don't want to say every system was like this, but every one I ever saw was set by a set of static jumpers or a dip switch. When you upgraded your cpu you put the little sticker that came with it on the chassis and changed the jumpers, they served the same purpose.

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The way I remember the turbo button it just halved the clock speed when not depressed, but it didn't bring it back to the original IBM PC's speed.

I do remember using it to make older games play less bad, but, as you say, this rarely worked, I think precisely because the speed was never the original one (I don't remember the clock speed of my first PC, but the first one with a turbo button ran at 33 MHz which I'm sure is a lot more than twice the speed of the first one; seems closer to 8x from what a quick search implies).

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mp2's files were almost usable on 386 but they used tons of space.
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They're doing that with Blueray games now, writing gigabytes of uncompressed audio for no particular reason other than to use up space and sucker the occasional audiophile.
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When Metal Gear Solid 4 released on Ps3, they used uncompressed audio. I think part of it was just to show off how much storage Blu Ray had.

The game Titanfall on PC has the audio in it twice, compressed and decompressed. The decompressed was for machines with dual core or less so that there was enough overhead to keep the game running.

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The video game Uru shipped with the sounds as ogg files. Post installation they were decompressed to wav files, I'm guessing so that they can squeeze some more performance out of the game
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Why would it play the compressed version if it had the decompressed audio right there though?
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Because with lossless compression you can save a lot of storage space without losing any quality. You are thinking about lossy compression.
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I think you misunderstood his question.

Given two files, a compressed file which must be uncompressed to play, and an uncompressed one which does not require extra processing - why would the game ever bother uncompressing te compressed file when the same data is already available uncompressed?

There's no true use case for that that I can see.

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With hard disks, I could see reading the compressed version from disk and decompressing giving you the bytes faster than reading the uncompressed version. With SSDs that advantage likely went away.
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I would guess to save on installed size?
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