Microsoft has confirmed that upgraded versions of the Xbox 360 Arcade consoles will include internal memory instead of requiring memory cards to save games.

Rumors started circulating yesterday when videos and pictures of new Xbox 360 Arcade units considered to include the Jasper chip set and internal storage began surfacing that the Arcade SKU had officially been replaced.

Today, a Microsoft spokesperson confirmed to Xbox360Fanboy, “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.”

While 256 megabytes is not a large amount of space for any music, media or game saves, it is an improvement from forcing consumers to purchase an extra $50 for a 512 megabyte memory card. This also lessens the actual price of buying the Arcade unit, which retails for $199, increasing its appeal to holiday shoppers.

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