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I was told by the jam moderator that Pico-8 is cool as long as the runtime is less than 4MB. Now, exactly what "runtime" means...
Is that the exported .html and .js files that make the web-playable version of the game? Is it the amount of memory used while the game is running? (Pico-8 is limited to 2MB) Is it both of these combined? ...

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Everything that needs to be shipped with the game for it to run on a clean installation of windows/macOS/Ubuntu/... The rules clearly state that this limits only the disk space.

it is how large all of the files needed to run the game combined