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Probably, but it sort of depends. If the programs have some kind of compressed data files, they wouldn't get compressed further. (I don't know for sure but I suspect some games would store their gfx in a compressed format.)
The best way to tell is to zip up the data you want to use this program on and see how much it compresses. I bet this thing won't compress as tight as zip (for speed considerations) but this will at least give you an idea of how small it will get.
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