QUOTE(PerfectGun @ Apr 23 2008, 07:17 AM)

Hasn't it already been confirmed that GTA IV will have an optional install if you have an HDD?
The solution isn't as easy as that. Currently all 360 developers have to code their games with the assumption that a hard drive is not plugged in. As you can probably guess, this gives the developers very little memory room to play with and is probably a very frustrating task.
Saying to that same developer "hey, now code for a different scenario where the the 360
does have a hard drive" is a complete kick in the teeth and any improvements in gameplay/loading will be rushed at best.
The only real solution is for Microsoft to do exactly what they don't want to do, and that's allow games to require a hard drive. In their minds this splits the installed base into 2, however I'm pretty sure the side without hard drives is a very small minority.
This was a very obvious problem at 360's launch that will probably cost Microsoft in the long run, as it shows up the general short-term thinking of American companies. The typical Japanese' long term outlook is probably what's causing the PS3 to be picking up such a momentum.