[url=http://www.gameinformer.com/b/news/archive/2013/03/21/rumor-next-xbox-will-require-that-games-be-installed-on-hard-drive.aspx]Source (Game Informer)[/url]
Yes, installing a game makes for better performance...but making it mandatory? Now that's just stupid.
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Well, this is what PS3 has been doing since it came out, and PC gamers have always had to put up with this. If it means better game performance and a quieter console and they ship with enough space to start with, I see no problem with this... aside from a lack of patience.