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arsenicazure said:

wasnt half life originally ported for the DC.. if they could manage that then I dont see how the 360's lack of a HDD should be a problem. Its not as big a problem as dealing with the cell's complex architecture

Amount of data in games today is enormous when you compare it to amount of data back then. Also players haven't developed as fast as amount of data. That means more problems with developing and some times annoyances for end users as well. For example pop-up in GTA IV, elevator 'hours' in mass effect etc.