It's like on the computer, you still need the CD to play it. It removes all the noise from the dvd drive and cut the loading time. Do you really think they would let you install the game and play without the DVD? That would be such a stupid move, as you could just rent a game, install it and play forever.
Although my favorite genre are RPG and RTS if I could only play ONE genre for a year it would be shooters. The online multiplayer of shooters give them unlimited replay value.
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