I have a ton of custom content, particularly the .sims3pack variation, and would like to gather them into .package files to ease the load on my computer. How does one make .package files?

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I think you may be confused on the reason for your lag. Too many .package files will cause lag. Are you sure that your computer is strong enough?

I'm pretty sure. Sims 3 is the only game that lags. I play most recent PC games with no problem on high. (and oddly enough, Sims 3 runs better with all settings maxed for me) Removing all of the sims3pack custom content speeds up the game so I need a way to squish them all into package files.

Hi, this tutorial may be helpful.

sims3packs when installed by the launcher or combined into either ebc or dbc files depending on whether they are store or non store files. You can merge package files along the same line with S3PE to help minimize lag. Whether you install the sims3packs and combine to ebc or dbc or extract them into package files and combine, really wont make much difference. There is also the drawback of having to use s3rc/decrap on store sims3pack extracted packages to make them useable in the mods/packages folder. Doing so makes them show up as regular CC and not Store Content.