But doesn't Apple manage apps by swapping out to offline less frequently used apps if running into space issues?
Yes, but on demand download is pretty flexible. Content can be added:
- with install
- and/or downloaded immediately after install
- also/and/or as needed throughout the lifetime of the app
So for example, early game levels could be included with the install, while other levels are downloaded in the background as the player nears those events. It's all up to the developer. Moreover, developers can mark different content with different "priority levels" to guide tvOS with which files to delete if it needs to make space.
And yes, my proposed "Gaming Edition" Apple TV would obviously have more on-board storage (in addition to beefier CPU and GPU)
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It was just a requirement by Apple that other game consoles do not require. This of course is worse for those with a slower connection.
Consoles are much worse. For ex., I have three highly popular PS4 games which required multi-GB downloads before I could even begin to play. And despite being delivered on Blu-ray disc, these three games hog a nearly half the space on my 500GB hard drive!