Microsoft has just announced a 512MB Memory Unit for the Xbox 360, a long overdue and badly needed upgrade to the existing 64MB memory module (pictured).

In addition, the company has announced that the official size limit on Xbox Live Arcade games will be trebled from 50MB to 150Mb, which is good news to all those out twere developing games for Xbox Live Arcade.

“The new size limit offers developers increased flexibility and continued opportunities for innovative game development, while also ensuring that the millions of gamers on Xbox Live can continue to easily access, download and play all Xbox Live Arcade games on Xbox 360,” said Chris Early, product unit manager for Xbox Live Arcade and Microsoft Casual Games. “If you take a look at current games like 'Roboblitz' and 'Small Arms,' it's clear that our developers deliver amazing game experiences within a compact size limit.”

The new memory module, eight times larger than its predecessor, will start shipping on April 3rd and will cost around $50 in the US but expect it to cost closer to £40 here. The 64MB unit costs £22.99 here now but there will be a 25% price cut coming when the 512MB unit launches. The company said that all of the new units will come with a free Xbox Live Arcade game, "Geometry Wars: Retro Evolved" – but only for a limited time.

With the PS3 just around the corner, you can expect to see Microsoft churn out the Xbox 360 add-ons and news over the coming weeks.

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