You basically need to have the hdd from what I see (to enjoy games, and even play some games). I dont know about you guys, but I dont have 500$ to play the newest video game out there. Im waiting until this thing is hacked or reduced in price. I gots gas to buy. Not to mention Ive only played about 10% of what I own already so no skin off my back. Thank god for XBMC or I probably wouldnt even use the current xbox LOL.