There were rumors a bit ago about larger memory units and an increase in the Xbox Live Arcade size limit for developers.  Well, just yesterday those rumors came true.  At the Game Developers Conference (GDC) 2007, Microsoft Corp. announced plans to launch a 512MB Memory Unit for the Xbox 360 and an increase in the official size limit of Xbox LIVE Arcade games from 50 MB to 150 MB.

The 512MB Memory Unit, available worldwide beginning April 3, 2007, will retail for an estimated retail price of $49.99 (U.S.) in North America. (retail price may vary)  The 512MB Memory Unit will be pre-loaded with the hit Xbox LIVE Arcade game Geometry Wars: Retro Evolved from developer Bizarre Creations Ltd. for a limited time.  The original 64MB Memory Unit will simultaneously drop in price from $39.99 to $29.99 (ERP). (retail price may vary)

Beginning today, the Xbox LIVE Arcade game size limit has increased from 50 MB to 150 MB, giving developers greater flexibility in game design and expanding the opportunity to add advanced game features while still keeping games compact.

“The new size limit offers developers increased flexibility and continued opportunities for innovative game development, while also ensuring that the millions of gamers on Xbox LIVE can continue to easily access, download and play all Xbox LIVE Arcade games on Xbox 360,” said Chris Early, product unit manager for Xbox LIVE Arcade and Microsoft Casual Games at Microsoft. 

“As we prepare to launch our first Xbox LIVE Arcade game, Boom Boom Rocket, we’re able to see how dynamic and creative this platform is,” said Chip Lange, vice president of Online Commerce for Electronic Arts Inc. (EA). Having Wing Commander Arena on Xbox LIVE Arcade allows us to take full advantage of the online play and bring to life a 16-player online arcade experience that delivers unparalleled arcade action.”

Get ready for some incredibly awesome Live Arcade title now ladies and gents.  Read the official press release for more on this announcement.