The wording kinda camouflages what exactly it's doing but it's obvious that it covers everything from downloading to whatever else it does. Steam doesn't need to install games, besides some mandatory checks for dependencies like DirectX and what not, as soon as the game is downloaded it's pretty much ready to go. The way things look for the Xbox One I'd assume this is the case as well, it's not downloading an installer then unpacking anything (like what was the case for PS3 games) I think instead it's just grabbing the files themselves. It shouldn't be called 'Installing' but that could just be because they didn't want to complicate the code for now, since it would need to say so many different things based on if you're downloading the whole game digitally or installing from a disc. Downloading would be a better fit of course, and a dynamic bar showing which percentages until you can play first would be rad. Blizzard has been doing the 'play before it's finished' stuff for a long time now and they provide a colored bar that shows you when you can first play, and then when it's got enough files to be 'optimal', then of course then rest after that for 100%. That is all a per game kinda thing though and the devs would have to set that up to show, and be responsible about being accurate along with microsoft having to set up those hooks AND reworking the UI a bit to show however they'd decide to show that... either color bars like blizz or notches on the download bar or whatever.
In either case you can generally begin playing way before it's finished, usually starting from 13% (my experience starting with dead rising 3) you can expect to see it change to 'ready to start' and depending on the game that will give you a chunk of it to play while the rest continues to fill in. Every single game I've played so far seems to support this and it makes me assume it's either mandated by Microsoft on a system level or it's just a good idea that everyone is doing anyways, prolly both. The PS4 seems to do the same thing from what I saw of the giantbomb streams when the system released, allowing players to jump in ahead of the full completed download from disc or net.
I tend to just play some other game while the latest one gets on with it's download, definitely something I appreciate when compared to the Xbox 360 where the system would stop any downloads if you played anything with online in it, even Uno if I remember correctly. Installing a game would lock you into that progress screen as well, so being able to pause a game, go to the store and buy another game and have it download and ready itself up all while I play that first game? Kinda rad.
I tend to view the chunk of the game it lets you play before it is finished as a demo for my impatience, I think in every instance where I did jump in and play before it finished I hit the wall where it needed to stop me and finish the download, that's probably more a reflection on game sizes and my internet download speeds than anything else though. I wonder if this will overtime make games a bit slower to get going at the start so if you wanna jump in early it is easy for the game to provide you with enough content and reason to stay in that content so you don't hit the wall before it's finished download as often.
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