It is in fact highly ironic that this argument comes into effect, considering that both consoles, look like giant hard disks. It is however, a highly important one. After shelling out hundreds of dollars on a consoles, it'd be a shame to run out of space. It seems unlikely though, with both the PS4 and X1 giving you half a terabyte of HDD storage, that you would encounter this problem. But think again. Currently, we can 'install' a sizable amount of games and still have space on our Xbox 360 or PS3 for movies or songs even. However, a few years down the road, when games start becoming larger and larger in size due to developers making them more complex, a larger proportion of data has to be unpacked and stored on the device itself, instead of on the Blu-Ray disks. This poses a problem. Soon we will find ourselves deleting things which we actually would like to be on the device in addition to our games, like blu-ray movies perhaps. Add this to the fact that the future of games is pretty much set on being available in non-physical formats. How then, do you overcome the problem of a lack of space. Logically, the best and first answer would be: Cloud Storage. Sure both companies do have their own cloud services, which will help both consoles. But the thing which makes the PS4 better, is that is has Gaikai to come to its rescue...again. Streaming games in addition to being a cool feature to toy around with, will actually come in handy when it comes to storage space. With gaming cloud technology, it will be possible to store and stream your games to your PS4. This not only saves space, but reportedly time too, as you have the ability to play as the game downloads. The way in which the X1 loses out is that while it probably will have a cloud service to store songs,pictures and videos, it is unlikely to feature game streaming even in the long-run, which is what takes up majority of the space in the first place. While this may not be a major game-changer, it is a relevant advantage to the PS4.
Closet nerd (not really) who refers to his PlayStation as his 'Baby' (really), fancies himself a girl-whisperer (not really), and has more curves on his body than a man should (really). Likes long walks on the beach and loves Twilight (not really).
You can contact him by email at karangurnani@outlook.com or follow him on Twitter @whazzhizname