For those of you who haven’t heard, Rockstar recently Grand Theft Auto V will require an 8GB installation. The install must happen whether you have a PlayStation 3, Xbox 360, or are even just planning on playing GTA Online.
Rockstar recently on their twitter feed recommended Xbox 360 users to only install the first disc labeled the “Install” disc. Apparently, this one rare time, the Xbox homepage option of installing the game discs (or in this case the disc labeled “Play”) will actually harm performance more than help it. If for some reason you want to install the “Play” disc and harm the performance of the game, go ahead, but it will require an extra 8GB of space.
The performance issue would only ever happen on the Xbox360 version as it will come on two discs. The PlayStation 3 version will come on one large Blu-ray disc and will only allow you to install what is required.
After much curiosity and searching I was able to find DigitalFoundry’s YouTube footage of the opening cut scene of the game that shows how performance is hindered by the installation.