As the above have partially covered. The PS3 allows parts of games to be installed, to improve load times, sometimes mandatory.

The 360 installs THE WHOLE GAME, its available on all games too, and because of the arcade, this wont be mandatory.

Theres a couple of games i play all the time, so this will be a great boost to me. Or would be if i had a huge HDD.

Hopefully Microsoft will reduce the price of the HDDs hugely, and start selling some very high capacity jobbies.

Perhaps a crap port like orange box is slower...but pick up Elder Scrolls: Oblivion and compare the load times between the 2 consoles.

As an owner of the ps3 and the xbox360...I'm happy to hear that they are doing this.

....now all we need are some decent HDD's in our 360's to actually use this feature.

MS strategy (if you can call it that) on HDD's in the 360 just isnt cutting it. 

Either bring out a cheap large capacity drive (160Gb+) or let us put our own in (maybe a formware change would allow this?) ala PS3.

a not-spinning HD will keep the overall temperature down as well in the box. Less red-rings to look forward to ?

(let's hope so, mine has given a red ring a couple of times lately...)

Points you're missing on this one:

1.a: PS3 installs where required are mandatory, new 360 ones are optional
1.b: Mandatory PS3 installs were required because the blue-ray drive was too slow to stream data live.

Installs were forced on PS3 owners due to hardware drawbacks, while 360 owners get the option to trade increased load speeds by some install time, but only if they want to...

Inc: please at least try to keep some vague sort of impartiality to your reporting please? articles like this make me place you no higher than ranting like the daily mail over some nonsense biased piece of news

many ps3 games, despite their installation, were still slower than their 360 counterparts. the orange box, portal specifically, is one example. get your facts right, or hire someone that actually plays games.