The Xbone allows external storage for games and the PS4 will have to allow that feature soon enough.

Both gen 8 consoles use 2.5" HDD's with a maximum thickness of 9.5mm of which the capacity currently maxes out at 1TB the only HDD's that will have higher capacity have yet to be released.

You may remember 640GB HDD's but they are disappearing as HDD firms move to 500GB platters. 9.5mm HDD's can have a maximum of 2 platters so as 320GB platters are replaced by 500GB ones the 640GB HDD's have been discontinued.

I will buy that 2.5TB hard drive somewhere in 2014.

Fortunate the game installs only take like 5min, but that doesn't mean I like to delete my games

You can have more than two platters.
http://techreport.com/news/24839/hgst-packs-1-5tb-into-9-5-mm-three-platter-travelstar-5k1500-notebook-drive

I can upgrade PS4 hard drive with ease, non issue. Eurogamer sounds like my old cranky Grand mother. I already have 4 games and still have a tonne of space left, it is more then enough for 90% of users out there, you can easily deleted games you no loner play. Who plays 7-8 games at a time.?

Yep, Eurogamer are just being idiots here. Not like you have to wait long if you decide to re-install a game on PS4 you can play it withing 30 seconds.

What does that guy expect - consoles always come with low amounts of space for that particular time. And they get upgraded as new skus come along. This is hardly surprising and I reckon 500gb with the ps4 is better than 40Gb with the ps3.

If only 8th gen games could be under 2 gigs in size. But I suppose it's impossible, they need all 50 gigs.

Not digital... you need to wait... that's what EG is talking about.

External hard drive support is supposed to be coming.

The average retail game seems to be around 20 - 35 GB. Much less for digital only games. For the average person, there is more than enough space.

I think this is another issue that only affects a very vocal minority. A few things to consider:

1. This is the first SKU for both systems. HDD space will go up with future SKU's undoubtedly.
2. You can swap out a bigger HDD on the PS4 or use an external HDD for the X1 (forthcoming)
3. Most people don't play 10 big retail games concurrently. You can always remove games that you know probably aren't coming back to. Even if you do have to re-install the game, long install times aren't an issue anymore since you can start playing within minutes of starting the install.
4. Cloud game streaming is coming, as early as 2014 for the PS4 via Gaikai. I'm sure MS will develop a similar service as well in the near future.