The Xbox One's 500GB maxes out at 362GB-365GB, meaning around one-quarter of the system's storage space is already filled before users download anything.
That's according to a new video report from IGN, which installed 20 games (of various sizes) to the system before meeting the cap. This figure also includes save files, apps, and GameDVR clips, though these file sizes are minimal compared to full-game downloads.
A Microsoft representative said that the discrepancy between the advertised 500GB hard drive space and the actual space users have for games and apps comes down to the basic console operating system install and some of the native first-party apps like Internet Explorer.
The Xbox One does not support external storage, which would conceivably solve the issue of limited storage space if a user could install games to a 1TB hard drive, for example. And though the Xbox One's hard drive is technically replaceable, doing so will void your warranty.
Yesterday, Microsoft released the Xbox One's first mandatory system update, which addressed various system, SmartGlass, and matchmaking issues.
Wii U owners encountered a similar issue. The since-discontinued 8GB Wii U Basic model only had around 3GB of free space for games after the required system installs.