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forest-spirit said:
To solve the space problem (assuming there actually is a space problem in this case) with the 360, woudln't it be possible to install the game to the harddrive and then use one disk as the play disk? Like you do in some computer games.

nope, because the 360 wasn't built in HD in mind,  and they would completely ignore the arcade.

and even with install you would need to change disc. but the disc  works only as a "key". to the installed software.