Doesn't seem that bad as long as a) the system comes with a good hard drive and b) like the PS4, it can be played as it installs. As for the idea that this would be the end of used games, that's probably not true. While a full installation may be required, nothing has been rumored suggests that this would be limited to one install per disc. One question, though. How much memory would the average game use? That's going to determine the definition of a "reasonable" size for a hard drive. A terabyte hard drive can be found for about $100. If you say the average game is about 50 gigabytes, that's about 20 games worth of storage, maybe 19 if you include space for system formatting, saves, DLC. I've never had that many Xbox games at once, so that doesn't seem too bad.