Xbox Live Arcade games are limited to 50MB, making the games small enough to fit on a Xbox 360 memory card. The new PS3 content will have an "arbitrary" limit of 500MB.
John Hight, the director of external development for SCEA, revealed that the PS3 will not have the same download limitations as the Xbox 360. While original games like Castle Crashers and Small Arms have to use a great deal of compressions to meet the 50MB standard, indie developers for the PS3 will not have to deal with the headache, creating games up 500MB large.
When asked about why Sony is focused on brand new games instead of "retro" titles, Hight feels that third party publishers will fill the void. "First party development wants stylish games that are fun. Our goal is to provide gamers with cool experiences that they've never seen before. Sony's third party publishers will undoubtedly provide updated versions of classic arcade games."
With indie game development taking off in the console space, Hight hopes the new games will bring new innovation to the market. "This is the best time for independent developers or would-be indies to create professional quality games and bring them to the masses. The cost of production and distribution remain low so the risks aren't too high to try new things. I truly believe that we're at the beginning of a renaissance of game design. Gamers are in for a treat."
Source: Firing Squad