It appears that users hoping to play the Halo 4 multiplayer mode in the near future will perhaps be needing to clear out some space from their system first, as "at least an 8GB USB flash drive or an Xbox 360 Hard Drive" will be required to take action. This word comes from Xbox's official feed in which they also say they "highly reccommend" the hard drive option for those seeking out a fully "optimal" experience. Good games and good graphics don't come cheap!
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