Some of you might still remember that not long ago Microsoft’s imposed limit on XBLA games was 50MB. Today, we have an Xbox Live Arcade game weighting an incredible 1.2GB – Watchmen, which apparently encountered no problems upon launch. And not because Microsoft is now allowing for such huge games to hit XBLA, but because rules are made to be broken.

The actual limit for Xbox Live Arcade games is 368MB, but according to the company, titles with “superior gameplay” are allowed to go over. Of course, nobody said anything about that, but another reason might be that Watchmen the movie is a successful box office release, which suggests that the game will also generate lots of cash…

However, speaking with Ars Technica, Microsoft said: “”We have set Xbox Live Arcade game file limits as a general guideline. An important part of Xbox Live Arcade is easy access, and keeping file size down is a vital part of that. Equally important is offering titles with superior gameplay. We weigh both considerations on a case-by-case basis, and will make exceptions when it makes sense to ensure the best customer experience.”

Allowing Watchmen to bend the rules will probably upset the smaller developers, but there’s nothing they can do. In the end, as Microsoft says, it’s quality that matters the most.