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Press_the_Button said:
I recently did this myself, bought a new Arcade unit and my older 360 is now in "storage". The new unit is cooler and quieter and has the added bonus of not stratching my disks.

Remember that any downloaded games won't work on your new 360 unless you are signed into XBL due to MS's silly DRM, which recognises you are not using the same 360 unit you downloaded the games onto.

http://www.xbox.com/en-US/support/systemuse/xbox360/licensemigration/