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You will need a memory card, yes. Something to note, though, is that you can get extra content/demos/Live Arcade games etc using the free Silver Live service. Pretty much everything except playing the games online. The memory card is miniscule in terms of storage space, and seeing as most gamers will have the HDD developers won't be shy about large saves. It's not too much more to spring for the Premium pack, so go for that. Get the play and charge kit if you don't want to worry about batteries. I'd be surprised if you managed to avoid gaming online if you have the ability, so I'd say it's better to make the smaller expense now, instead of changing your mind later.
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"'There's a tendency among the press to attribute the creation of a game to a single person,' says Warren Spector, creator of Thief and Deus Ex."
-- From an IGN game review.
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