Microsoft has once again raised the file size limits for Xbox Live Arcade games to 350MB, which gives developers a bit more real estate for creating their games.
David Edery, portfolio planner for XBLA, said they were moved to make the change by "listening to [their] partners, listening to [their] customers to try and get a feel for what's right."
It's progress, but it still isn't on par with the PlayStation Network, which has no limit of file size. Sony even offers full PS3 releases for download like Warhawk and Gran Turismo 5: Prologue.
Listen up, Microsoft. You're so close to putting a hard drive in every 360 and forgetting all this silly business about the Core / Arcade.