Update: Microsoft has confirmed to Eurogamer that Xbox 360 Arcade models are now shipping with 512MB of onboard memory as standard.
"The Xbox 360 system software uses some of the included 512MB memory; less storage will be available to users. Additional storage (sold separately) may be needed for game saves, Xbox LIVE Arcade games, content downloads, personal file storage, and additional enhanced functionality. A hard drive is recommended for LIVE, and is required for some features," the company said in a statement. "We want to offer consumers a bit more memory at the same low price so they can enjoy more experiences on Xbox LIVE."
Original story: Eagle-eyed modders have uncovered what appears to be a Jasper-based Xbox 360 Arcade with 512MB of onboard flash memory rather than 256MB.
Microsoft hasn't said what the extra memory is for, or whether it's standard on new Arcade models. The previous 256MB was introduced to allow for storage of files relevant to last November's New Xbox Experience upgrade.
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