A few days ago we posted the results of a Eurogamer test that showed installing Halo 3 to the hard drive with the new NXE actually caused load times to increase. Bungie has posted an update on their site explaining the reasons for this. It’s fairly technical, but the short answer is that Halo 3 already copies data to the hard drive, so when you install the game to the hard drive, the hard drive is doing twice as much work to read information from the cached data and to also read information from the installed game. A hard drive can’t read data from two places at once.

The full explanation is over at Bungie’s site. They also don’t seem optimistic that a fix for the issue will be forthcoming.