The Xbox has only a certain amount of space reserved for save games. It doesn’t matter if you still have space free, if your save game storage is full you will get this error. You have to clear the local save game storage.
Press the Xbox button on your controller to open the guide. Select Profile & system > Settings > System > Storage.
On the Manage storage devices screen, select: Clear local saved games. This deletes games saved to your hard drive, but they’ll still be saved to the cloud.
Clear local Xbox 360 storage. This deletes Xbox 360 games saved locally, but they’ll remain in the cloud.
