Users will need 128MB of storage space to run the new firmware upgrade, which is due to be released on November 19th. This isn’t a problem for the majority of 360 owners who have a hard drive, but could be problematic for Xbox Arcade owners.
Speaking to Xbox 360 Fanboy, Microsoft explained: “The new Xbox experience will require 128MB of free space. A hard drive is recommended for the optimal experience, to take advantage of some new features, and to be able to enjoy the great movies, TV shows and games available on Xbox Live.
“While we expect the majority of consumers to download the New Xbox Experience without a problem, a small percentage of Xbox 360 owners do not have enough memory to accommodate the update. To help ensure all Xbox Live members are able to download the New Xbox Experience and enjoy its new features, Microsoft will be offering storage solutions to the Xbox Live community.
"We are not sharing details of this offering yet. Be sure to check xbox.com for more details in the coming weeks.”