I had this question as well. Seems that it is rather cumbersome to swap the harddrive, not to mention that it's unclear yet if it might get you banned in the future. Response from Microsoft and their support was pretty clear: it violates their user agreement (you're not allowed to modified the XBox One), so I ended up buying a cheap Western Digital 2Tb USB 3.0 drive (like ) and am using that right now - works like a charm by the way. After having bought that one, I did notice a possible more elegant option with which is said to attach nicely to the XBox One. Not the answer I was looking for, but it is what I've decided to do.

Hope this helps. I am in agreement with you that it's 'my hardware', but if you read their agreement (mostly aiming at XBox Live I assume) one could assume that modifying hardware might result in getting banned from XBox Live. I guess that's the big deal for most users. Granted, replacing a hard drive with a larger model should not be a problem in my opinion, but.

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How to Use an External Hard Drive with Xbox One By Ryan Lynch – Posted on May 12, 2017 May 11, 2017 in Gaming As you may or may not know, all Xbox One games must be fully installed to your console’s hard drive for optimal play experience.

Microsoft could take it as an excuse in the future to block you, or not. See: [License Terms ] 1. (c) “ Authorized Accessory” means a Microsoft branded Xbox One, Xbox 360 or Xbox hardware accessory, and/or a Microsoft licensed, third-party branded, Xbox One, Xbox 360 or Xbox hardware accessory whose packaging bears the official “Licensed for Xbox” and/or the “Designed for Xbox” logo. (i) You will not use Unauthorized Accessories or Unauthorized Games. They may not work or may stop working permanently after an Xbox Software update. (iii) You will not attempt to defeat or circumvent any Xbox Console, Kinect Sensor or Authorized Accessory technical limitation, security, or anti-piracy system. If You do, Your Xbox Console, Kinect Sensor or Authorized Accessory may stop working permanently at that time or after a later Xbox Software update.

Thank you for the clarification:-) I agree that shooting from the hip is not a good approach - I did however, contact Microsoft before I wanted to start replacing my hard-drive and did get the answer (my first post) that it would violate the XBox-live agreement. It was not their legal department though, but their tech support (who might have gotten the instructions by their 'boss' to always give that answer, true or not). I also agree that it's 'my' hardware, so I should have the freedom to do what I like, unless it's to intentionally harm a company (like Microsoft) financially (ie. Illegal games etc), and not have to be ripped off for something that should have been possible/there to begin with. Anyhow; thanks again for the clarification - no offense taken.:-). If one is looking for clarification on legal terms in warranties, licenses, etc., always contact the company's legal department and not customer service/tech support, as all they're going to do is give you their 'opinion' or perception of what it says, not the legal definition One should always go to the source for clarification, not a third party.