Best answer: No, but they are significantly useful. If you plan on having more than a handful of games installed at one time, you’ll be needing an external hard drive. Luckily, there are multiple options and sizes to choose from.
What makes external hard drives so useful?
The reason why getting an external hard drive for your Xbox One console is a good idea is that in today’s market, games are getting bigger and bigger. On average, most big titles are around 50GB in size, with some titles like Halo 5: Guardians and Red Dead Redemption II being more than double that.
This means that the Xbox One family’s built-in hard drive (either 500GB or 1TB, depending on the version you own) won’t be enough if you plan on having more than a handful of AAA games installed at one time. An external hard drive gives you significantly more space to work with, meaning you won’t have to pick and choose what to have installed.