Only 698 is formatted. Just like a 120 is only about 111. Remember 1GB=1024KB but that's not how drives are calculated as far as space. They do 1GB=1000 so it is off. After the OS install of course there was less than that, but b/c I sent it back today and am awaiting replacement for screen issues, I didn't get the chance to reinstall the OS and strip out the stuff I don't need, ie. extra languages and drivers.