ANSWERS: 2
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No, it does not. You can save your games right to its internal hard drive. However, wou will need a memory card if you want to use your game saves on another Xbox - it's just like transferring files between computers using a floppy disk on a PC.
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No. Everything can be saved onto the hard drive, but you can also save onto memory cards connected into the controller. Take a look at the back of a controller. You'll see the slots for it.
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