Suggestion:
because they dont want people buying games, installing them, and returning them
Why Do You Need a Disc to Play a Game You Downloaded to Your Xbox 360?
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installing to the HDD just helps you play the disc. i know a lot of people have that question, but yeah… microsoft doesn't want people just installing and returning. if your friend is letting you use his disc to install it to your HDD, it's to help you play your scratched disc (increases success rate of disc read).
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