Reader Thomas sent along this video showing the loading differences between the standard DVD disc and the new Xbox Experience HDD load option, which allows you to install an entire game on your hard drive. The game being showcased is Grand Theft Auto IV, which has notorious load times. As you can see, it does in fact cut down on some loading, but I don't think it was that much of a time saver. Still, every game is said to have different results. And hey, at least your roommate will finally be able to get some sleep now that the disc drive won't have to spin as much!
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