Like the PS4, the Xbox One includes a 500GB hard drive. Unlike the PS4 - and the Xbox 360 - the Xbox One does not feature an overall storage option to tell you how much space you have left.
Explaining the decision, Microsoft said it didn't want Xbox One owners to have to worry about "limitations", adding the console was "designed to make storage management automatic".
"Xbox One was designed to make storage management automatic," Microsoft said in a statement issued to Game Informer.
"For saved games, settings, and other information that Xbox One customers save to the cloud, space is virtually unlimited. On the internal hard drive in each Xbox One, games and apps can be uninstalled or reinstalled instantly with the click of the Xbox One menu button."
While there is no overall storage option, you can see how much space any app uses on an individual basis, Microsoft said.
"Saved games and settings information is retrieved from the cloud for any game as its being reinstalled. By being smart about how storage is managed, Xbox One keeps everyone playing, watching, and sharing their entertainment content rather than worry about limitations.
"You can also see how much storage any app uses by pressing the menu button on that app."
As Game Informer points out, you do not need an Xbox Live Gold subscription to benefit from cloud saving on Xbox One.
But what happens if, for some reason, Xbox Live goes down or you lose internet connection, and access to the cloud is impossible?
Microsoft said Xbox One tracks your progress if you play offline, and when you reconnect to Xbox Live it will sync that progress in the game and sync your achievements.
In Xbox One your game progress, purchase history, pins, and activity history available to you wherever you are when you want to play because they are stored in the cloud, Microsoft said.
Everything stored locally on the console is just a cache that enables you to play offline, track achievement progress offline, and more. When you reconnect we will sync your progress in the game and sync your achievements. If you remain connected to the cloud, your game progress will always be available in the cloud so you can pick up where you left off in the game from any Xbox One you play the game on; if not, it is stored locally on the console.