An standard Android today, with for instance 16gb storage - will as rrileypm says, have 2gb of this space dedicated to installed applications. But with so much applications and games we often install, especially on tablets as they are more of a middle-way between smartphones and computers - this space is filled up quickly. It is possible to install /some/ games and applications to the remaining user space (SDcard) - but far from all of them.
The way to fix this problem is increasing the part of those 16gb, dedicated to installed apps and their data. That is what the parameter files does.
A sidenote: in an Android unit with internal storage (like this tablet, with 16gb) - if you have an additional physical SDcard that you can take out of the tablet, this is the /external/ SDcard. Earlier versions of Android and their phones, didn't have any /internal/ storage - other than that wich is dedicated to apps and data. Flash memory was expensive then, so all other "user data" had to go on an external SDcard - and it was up to the users how much to spend on external storage - if any. This is why, even though the free userspace that is left after a part is dedicated to apps and data, is internal and not removable - but still called "SDcard". When tablets and phones came along, with both internal free storage, AND an SDcard expansion slot - that external card was adressed as "external sdcard". Instead of changing the name, they added "Another layer to the storage cake". And following the hierarcy: Dedicated System/Data storage > Internal user space > External user space.
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