Quote Originally Posted by Renik View Post
The letters are here in the forum http://forum.square-enix.com/ffxiv/forums/644 there you can find the transcriptions, unfortunately the letters from the e3 where the response to the instanced housing is, are not archived here.

But in one of the letters between the XIV and the XVIII, they talk about the lack of memory and how they wanted to solve it with software adjustments (server structure i assume), before having to spend a lot of money upgrading the servers or adding new ones.
Only found,

A: Kasuga: At the moment all I can say is that we are looking into it, but we're at the point where Yoshida will make a judgment call.

Yoshida: First, we'll be adding land in patch 2.38, and it will then be possible to purchase personal housing, but the issue of how many plots to add will be under discussion until right up to the last minute. Just the other night we had a meeting which included Kasuga about even more additional plots and what kind of plans they have in order to accommodate them. At the same time we've been looking into whether we can increase the number of plots by juggling our graphic resources. Currently, we're working out all the parameters and then we'll be deciding how to do it and at what time based on the results.

Kasuga: The quick answer as to why it's not so simple to add more land is because of the infrastructure. Compared to our initial plans for infrastructure, the current demand for land has far exceeded what was predicted, and in the event that we decide to go forward with the current infrastructure, we would have no choice but to address the issue with software. And if we were to rely on a software solution, it would be difficult to secure the time required to test everything out, further delaying the release of new land.

Yoshida: Of the ideas we have at the moment, we are trying to make the final decision as to which solution is the quickest and would allow for the most land, as well considering the amount of time and resources it will take. Of course there have been those who have suggested spending millions to enhance the servers, but this would be the last resort for our engineers. We're currently looking into exactly how much we can increase the amount of land with our current resources and we'll be doing this right up to the last minute. If it appears that all other avenues have been exhausted, then I'll make the call to beef up the servers. At the very least, we will be increasing land in patch 2.38 and you'll also be able to start purchasing private housing.
Says nothing about memory.

I'm getting the impression that the "neighborhood" is what holding everything back. Rather have an stand-alone instanced house - i.e. no neighborhood - then no house at all.