Xbox 360 Arcade to include internal memory

Microsoft has announced that all new Xbox Arcade consoles will come with a 256MB internal memory unit to compensate for the model’s lack of a hard drive.

The news means that owners of the budget console will no longer need a memory card to download the new Xbox Experience firmware upgrade, which requires 128MB.

"We are constantly updating the console's more than 1,700 internal components," the company told GameSpot. "We can confirm that we are moving to internal memory for the Xbox 360 Arcade. The physical internal memory is the same size as the previous external memory units - 256MB."

On the downside, the Arcade will no longer come bundled with a memory card, meaning customers will have to purchase one if they wish to transfer profiles and saved games to other machines.