You don't have to get a hard drive that is made by Microsoft; there are third party hard drives you could find on Amazon or eBay. Only problem is that if you have an issue with it, Microsoft will be unable to help. Me personally, I use two flash drives, and they work fine. The only issue is you can't play certain games such as Titanfall or Destiny, unless you have a hard drive. Those games would require a hard drive however I don't know why. A word of advice though, if you go the flash drive route (which is usually cheaper), Digital Copies are not a good idea, as they take a hefty amount of space. Buy the discs if and when you can. I have the Digital Copies of GTA V and CoD Black Ops II and they take up the majority of my space.
edit: Saw Mogar's post above. You don't need a hard drive to play GTA V, a flash drive will work as long as it is a USB 2.0 or 3.0.
Last edited by Aura Sensei™; 11th January 2015 at 9:50 PM.
I'm feelin' electric tonight
Cruising down the coast goin' 'bout 99
Got my bad baby by my heavenly side
I know if I go, I'll die happy tonight