Well, it looks like the lack of a standard hard drive has finally bit Microsoft in the proverbial behind. The upcoming New Xbox Experience Dashboard update; which will feature an 8 player party system amongst other great features like play from hard drive, avatars, Netflix streaming and more; will require at least 128MB of storage to run and/or install.
Uh-Oh! What about Core owners? What will they do without a hard drive or a solid storage solution. Will Arcade owners be forced to buy another memory card? Luckily Microsoft is stepping up to the plate with a "Storage Solution."
And just what is that? By filling in your console serial number and information you may be eligible to receive a free 512MB memory card. Or, if you prefer, you can get a 20 Gigabyte hard drive for $20. Not a bad deal!
Source: Xbox.com