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Godot said:
It's a pretty ridiculous question. MGS4 alone wouldn't fit on a 40GB PS3...

It would. Despite all the blabbering about Blu-Ray not being enough for MGS4, the game takes up 30GB of data on a Blu-Ray disc.

Its quicker and easier to just switch discs, 'am I right boys? uh? Uh?

You could install games, switch discs, or do a combination of both as the installs are optional and not forced on you via the system's inherent weakness.