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In this tutorial, the instructor shows how to reduce the size of Unity builds by identifying assets that are inflating the build size and compressing them. The tutorial uses the highway racer asset from the asset store as an example. First, build the Unity project to see the initial build size. Open the console tab, click on the three dots, and open the editor log. Search for "build report" to see all assets used in the build sorted by size. Identify and reduce the size of each asset in the project.