>>36208040Both.
In broad terms, models are files that have to be taken by a program called a graphics engine. Then, the graphics engine takes the models and prints the pixels at the adequate places in the screen depending on the position of the camera and the 3D position of each element in the model. A model is made out of a bunch of vertices and edges, and more vertices means more calculations to be made to draw the pixels.
So, unoptimized models in this case means that the models have too many vertices and edges, which means the console makes too many calculations while drawing on the screen, which in turn makes the game slower because each frame takes longer to be drawn.