Think people! (Score 2, Insightful)

Of course you can patch and mod the game, just look at the Xbox. For Games like Ninja Gaiden you can add new content and change/improve other things like the camera.

The patch/mod whatever is stored on the HD and the game knows to check the HD for this, this also handles the whole save game file issue. So technically it most likely installs a game folder on your HD where your save game files and modifications can be placed and then is referenced by the game when it's loaded.

I mean seriously, for such an apparent tech savvy site, a lot of you seem to be clueless or did the initials MS throw most of you off?