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Machiavellian said:

The PS4 allows you to swap out your HDD for new bigger one and the X1 allows you to connect additional storage to the unit.  Both seem to have a way for you to extend the current storage on the system.  Also if you are able to save your game in the cloud, then you just move games you no longer play alot to the cloud and only keep games you plan on the HDD.

There is no save your game for the Cloud... what MS do is only track the game for your profile and when you need to play the game again you download the game from the same place that a new download from store... makes no sense to have the same "binary files" of the same game uploaded to the Cloud in a lot of profiles... MS will matain only one copy of the "binary files" for all profiles (even the new purchases).

Today when you need to play a game that you deleted... you need to download it again from Live or PSN... I don't like that because I love to have all my games installed in my HDD... play anytime... anywhere... that's because I have issues with HDD space.

Download to play games didn't work here... you need to give some time to the system download the game before play.

PS. What MS save in Cloud is your profile, saves, etc... the game data that is specific for your profile... the game itself is not saved in the Cloud... you just redownload from the source.