You really don't need one but it would help. With a 512 MB memory card you could store your Gamertag, quite a few game saves and smaller DLC (like Rockband and Guitar Hero songs). For larger DLC (maps, levels), movies and demos you'd need an HDD.
You also need the HDD if you want to play Original Xbox discs. Just look around a find one cheap.........I just won a brand new 20GB from Ebay for $35, shipping included!
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