One of the first things most Xbox 360 owners do when they first purchase a title for their console is to install the disc to the console to improve load times and game performance. But Bethesda is currently saying not to do that, as installing The Elder Scrolls V: Skyrim on the Xbox 360 will make the game actually perform worse and have texture issues.
The developer came out to say the following, saying the issue will be fixed in the next patch:
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“We’ve seen a few reports of certain textures temporarily scaling down on the Xbox 360, and not scaling back up. We have verified that this issue does not occur when playing off the disc and when the game is fully cached (not installed).
“Skyrim makes heavy use of the Xbox 360 caching system, and caches over the normal course of play while in menus or interiors. This cache can be wiped when other games are played or when the user manually removes it. We’re working on a solution in the next title update for those who have installed the game.”