Different groups use different languages and techniques, but most tend to use assembler I think.
The 4K intros can definitely blow you away with what they can fit into them, with the Amiga and PC ones deliver some amazing results to the strengths of their hardware. And if you watch the slightly larger releases like the 16K and even 64K ones they still leave you wondering how the hell they did it.
I do know that for any 3D stuff they use procedural textures, so no real image texture maps exist, it is all created from code, which helps make it much smaller. One great example of this is the FPS demo create by Farbrausch on the PC, which generated a full procedural textured 3D world that was playable just like any FPS, and it was 90KB total size. That was amazing.
This coding for the demoscene also shows how bloated today's Games and software has become. But it also allows coders to perfect techniques that can then be used on platforms that don't have the luxury of large storage spaces, such as mobile phones and handheld consoles. For these, having techniques developers in such small file sizes allows developers to fit huge games onto relatively small media or downloads. Quite amazing.





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