The 4 GB system has a flash drive not a physical hard drive.

Love having this, wish I would have agooten the one with a bigger hard drive, had to order one online already

I was a nervous about the storage space on the console only being 4GB, but the ability to connect any portable hard drive has made the storage not an issue at all

Included 2 wonderful drive, plenty of games for all family, from 4 years onwards.

I will pick up a @ 2 TB (Terrabyte) hard drive, for $80 bucks, instead

but I did not know that for some of the games and content for XBOX they require a physical hard drive in the system.

So I buy an Xbox hard drive at Wal-Mart but guess what.

I also decided to buy a hard drive which I got on eBay from China for like $40 for 120GB.

Although the storage is limited, I knew this going in, and preferred to spend the money on the Kinect unit rather than a larger hard drive.

So one needs to purchase a hard drive (99-130 dollars depending on size and retailer) to play some of the games.

Be prepared to purchase an additional hard drive to increase the storage space.

I was a nervous about the storage space on the console only being 4GB, but the ability to connect any portable hard drive has made the storage not an issue at all

Later on we paid $50 for a 500 GB external hard drive to give him more storage space

I also added the 500 mb hard drive.

On a side note, if one was to look thru amazon for a off brand hard drive there are mixed reviews on them.

Turns out I need a $100 250GB hard drive to play them

I bought an Xbox 360 and a game I am unable to play the game because I try to play the game and it says a hard drive is needed I have asked and cannot get a straight answer from anyone regarding this issue

This new xbox 360 E is so cool