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iOS apps take up more space than advertised?

I would like to download "RAGE HD" which the App Store says is "643 MB", but after clicking "BUY NOW" there is a message:

There is not enough space to download "RAGE HD". Please delete some photos or videos.

But my "About" screen says I have "898 MB" available. How much extra space should I need to be able to download this game?