Activision has moved to explain the enormous file sizes Call of Duty fans can expect to hit their hard-drives with the launch of Modern Warfare 3 this month.
Now that's the ultimate end game: Just ship a new console for every new game.
MS, Sony and Nintendo just ship the base motherboard + DRM platform but game devs ship the CPU+GPU appropriate to play the game at 4K30 (obviously with dynamic scaling)
You're right -- end of the title had "16GB"; shouldn't have just grabbed the first listing on Amazon that came up in a search for 1TB. But there are listings for 1TB flash USB drives between $10 and $20 -- you could legitimately ship games on them.