Talking to website xbox360fanboy, a Microsoft representative said “We are constantly updating the console’s more than 1700 internal components. We can confirm that we are moving to internal memory for the Xbox 360 Arcade. The physical internal memory is the same size as the previous external memory units – 256MB.”
So, here you are, this is the fist step for a bigger and even better Xbox 360, now with an internal HDD. And, even though definitely important news for the industry and console’s fans, we would’ve prefered Microsoft to confirm that they have indeed solved or at least minimized the risk or RROD occurrence. Hopefully that will follow soon, too!