Depends, will it be your primary gaming machine? If so, get the 1 TB one. If it's a "second" console, 500 GB should be fine. Either way, you can always buy an external drive to expand storage.
I would go with 500gb. You can always add more external memory, and the price per gigabyte is pretty bad on going from 500 to 1TB. There just isn't much benefit to more internal memory on a console that accepts external drives.
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