Wait so for this Hoilday, only the Wii U will allow you too have to digitally download games?

Didn't expect that.

It's just external drives you won't be able to install to. You still have 500GB of memory in the consoles internal HDD.

Ah, that's odd.  My bad then.

500GB is more than enough room for me.

Doesn't matter. I doubt anyone is going to fill up the 500gb HDD in the first month. I'm sure it will support all external HDD functions by the end of the year.

Hard Reset? Good game

A little surprised about PS4 but it's not something that can't be added with a firmware update (like X1 I'm guessing). Then again, if you can just update the internal HDD like a laptop then it's really not an issue.

M$ has limitations like this on their Surface Pro system as well. No software installation to external sources. THat has been out since Feb of this year and no capability yet. It's pretty obvious this is a copyright issue more than anything.

On the Ps4 you can! 

500GB is going to be very limiting due to mandatory full installs. Next gen games will take up a fair bit of space. I downloaded the digi version of Uncharted 3 and that took over 30gb. I have a 500gb in my PS3 and it's full. I have to remove games each month PS+ is updated.

Just saying - 500gb will bite hard after about 10 games but by then they hopefully update the X1 to allow for external HDD game installs. It's more critical on that system due to mandatory full game installs.

In XOne's case, this might be a problem, since those proprietary hard drives are quite expensive. Still, with both consoles having a 500GB HD on the box, I'm not sure lack of space will become a problem big enough that external storage needs to be used.