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It stores the game on your hard drive so you dont need the disk. It also makes the game when running, quieter and loads faster ect... note answer is not accurate . you still need the game disk to boot the game up (they wouldn't want to make it that easy rto pirate games ) but installing the game will make the game load faster crash less run quiter and most importantly of all lessen the risk of your favotite game disk getting damaged since it won't be spinning any more

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Q: What does install xbox 360 games on the hard drive do?
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