Halo 4 multiplayer requires 8 gigabyte install
Arcade or Core console? A flash drive will do.
In order to play Halo 4‘s online multiplayer mode, you’ll need 8 gigabytes of space on your Xbox 360 hard driive. If you don’t have a hard drive, a USB flash drive will do.
According to Xbox.com, playing with a hard drive will ensure a more “optimal experience.”
Find more info here.