"System" Space being taken instead of Other up in the new update 3

I've looked through a few different post and noted that someone said there wasn't a way to get rid of Other or System storage. I recently tried updating a big game, and had a little over 1 GB of space. I went through my phone and deleted all my pictures, videos, a few games and apps, as well as some music, but this wasn't enough I tried downloading the game again and still no go. I tried deleting a few more things and still the same thing. I went into the storage settings a few times trying to figure out where everything was going and I noticed that the System folder climbed up in how much it was taking up. When I first noticed it, it was at about 5 Gb, and now it's taking up more than 8 Gb, this is more than half of the storage on my phone (16 GB). I don't know what to do other than restoring my phone, but I shouldn't have to do that when my storage goes up. I am assuming that when you are updating apps/games that they are stored here, and possibly not deleted, at least it seems like they aren't deleted when your app/game doesn't install due to storage. Anyone else with this issue?

Windows Phone 8X by HTC
T-Mobile
OS Version: 8.0.10520.155