There is a new beta preview version of the New Xbox Experience, dubbed the NXE, and the update is apparently coming in August. Kotaku is reporting that according to the CheapAssGamer forums, users of this beta of the NXE features considerably smaller ame install sizes.
Many games have been noticed for their size reductions such as BioShock, Left 4 Dead and Street Fighter IV. Raiden Fighter Aces now takes only 484 MB, Left 4 Dead is now only 3.7 GB from an initial 4 GB. Rock Back 2 went from 6.3 GB to 4.6 GB, a remarkable decrease. While NHL 09 registered a decrease in install size from 5.7 GB to 5.0 GB. Additionally, Street Fighter IV now only takes up 4.6 GB of HDD space.
Another piece of good news is that the performance ratings of these games have not changed, meaning the games run just as they did before. But gamers will still need the game disc to play. It is not clear how helpful storing the games on your HDD is, since this only reduces loading times by a few seconds.