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There really isn't much MS can do about it.
I think all 360 games will be made on DVD, so if the game is large, it'll just have mulitple discs. Only other option would be forcing everyone to buy the HD add-on.
But I believe dual-layer DVDs can hold about 8gigs, so the games will have to be very large to require more discs or an HD disc.
I read somewhere that Rockstar said it's a problem for GTA's. It got me a bit concerned. What about 3 or 4 years down the line?
http://biz.gamedaily.com/industry/feature/?id=16019
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