http://kotaku.com/5294528/new-xbox-360-arcade-units-appear-with-double-the-built+in-storage

"Microsoft may have stealthily released a new Xbox 360 Arcade configuration this Spring, as members of the XboxHacker forum point to a new "Jasper" model shipping with a built-in Memory Unit with double the storage capacity.

By way of Xbox Scene, the new-ish Xbox 360 motherboard, sporting an April 2009 manufacturing date, features the more reliable "Jasper" guts (65nm CPU and 65nm GPU) plus a 4 Gb NAND flash device. At roughly 512 MB, that's double the storage of current built-in Memory Units, meaning double the entertainment.

Considering Microsoft's push for more and more downloadable content via Xbox Live Marketplace, increasing the ability for Xbox 360 Arcade owners to buy more just makes sense. But we're checking in with Microsoft to check on the legit-ness of these new models."

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Interesting, that would be a nice move. Though I don't see why they haven't announced it...

Im growing tired of your FUD and LIES.

wait... why is this a bad thing?

Truly your sarcasm never ceases to evolve its stealth abilities, Squil.*

* I think

Squilliam said: Im growing tired of your FUD and LIES.

I NEVER MEANT TO HURT ANYONE!

Go crash at your own place, because I wont be crashing there!

Rainbird said: Squilliam said: Im growing tired of your FUD and LIES. I NEVER MEANT TO HURT ANYONE! Go crash at your own place, because I wont be crashing there!

Its ok because I live in my car and I can crash it any time I want to!!!!

I don't think that chip is usable for gamers.
It's just a replacement for the older chips for the same price. Possibly the producer fases the 256MB-chip out.

Squilliam said: Rainbird said: Squilliam said: Im growing tired of your FUD and LIES. I NEVER MEANT TO HURT ANYONE! Go crash at your own place, because I wont be crashing there! Its ok because I live in my car and I can crash it any time I want to!!!!

Gah! You're forcing my hand here, since I couldn't sneak this information out of you, I will ask directly!

Is New Zealand ruled by sheep, does sheep eat humans, and would a Patrick Swayze disguise allow me to infiltrate the country without being eaten!?

Why not just drop the Hdd price?

Joystiq contacted them, and Microsoft confirmed it. They also said that not all of the storage will be usable, as the system software uses a portion of it.

My question is: If you can fit all the system software in under 512 MBs, then where do you get off selling me a '20 gigabyte' hard drive that only has twelve gigabytes I can actually use?

It's more like 14-16GBs and the reason is that they use the extra space for caching.  That and the fact that a 20GB hard drive anywhere is only about 18-19GB as all hard drives are never their full amount (due to the issue of doubling memory and the fact that the actual measurements for data are not perfect 1000s, but 1024, etc).

I predict we will see HDD updates as well come August time which will likely be a move of at minimum, the 60GB > 80GB, 120GB > 160GB.  Could even see a full doubline and go 60 > 120 and 120 > 250