It seems as though microsoft wants more people to enjoy their new avatar system so they wanna make sure everyone who gets it no matter what way, each unit will have built in memory to start them off with.....sad thin is its only 256mb so it doesn't really change anything since it comes with one already. Personally i don't think they should mess with the hardware as its got too many problems already.

http://www.gamespot.com/news/6201864.html?tag=latestheadlines;title;2

512 mb would have been preferable - at the moment it seems like a disadvantage cos you can't take your saves with you. But it'll no doubt get bumped up soon.

Also, assuming there was a game with an install small enough to fit on this flash memory, then the arcade would have the quickest loading time of any 360 SKU

it will cut costs forsure. a internal component is cheaper then a bulky external accessory.

Xbox 360 with internal memory cards = Jasper.

So that means that the Pros/Elites are not as good as the Arcades then. o_O

 they have a 20gb/120gb hdd that comes with it, how is 256mb going to have any benefits to that

They won't have that extra 256mg of memory built into them. With an Arcade, even if you slap a 120gb hdd on there it will always be better than a Pro/Elite because it also has 256 internal memory, making it 120.256gb.

So you can never upgrade your system?

Im pretty sure the 256 memory card will be in all new systems and not just the Arcade. Im about 90% sure of this.

 u cud do w/e u want, u'll jus ave an extra 256mb built in to the system