The Xbox 360 Arcade consoles will now come with 256MB internal storage; it previously had only 16MB storage and users had to rely on a removable memory card.
The news was confirmed by an unnamed Microsoft spokesperson who described the move as part of "constantly updating" the console's hardware. Probably, this was done for the New Xbox Experience, which requires more storage to load.
Now, the new Xbox 360 Arcade buyers can save more games and downloaded content, but they will lose out on portability as this storage feature is fitted internally.