Since Xbox Live started, the requirement was that all games had to have a below 50 MB restriction. Now, it appears that Microsoft is removing that restriction, which means that players could get better looking games, longer games, etc. With so much memory going to be used with your hard drive, could we see a larger one coming somewhere down the line, or will players just have to manage their memory better.

From the article:

The Xbox Live Arcade file size was capped at 50 MB to accommodate consumers who purchased the hard drive-less Xbox 360 Core SKU (those consumers had to use one of Microsoft's memory cards). Under condition of anonymity, sources revealed to 1UP that the file size for Xbox Live Arcade titles has been increased from 50 MB to 250 MB and with Microsoft's approval, that size can be expanded to 450 MB. When asked for comment on the reported change to file size, Microsoft said, "We do not comment on rumor and speculation and so we can not confirm that rumor. Aside from the exception we granted for 'Castlevania: Symphony of the Night,' we have not announced any plans to alter the file size standard for Xbox Live Arcade games. However, adjusting the size limit is certainly an option in the future, and as always, we are listening to feedback both from gamers and developers on what will provide the best user experience. Whatever choice we make, we will hold a position that provides for the best possible Xbox Live Arcade gameplay experience."

Read the full article over at 1up.com