"We are constantly updating the consoles’ more than 1700 internal components,” a Microsoft spokesperson told 360fanboy, adding that “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."
That extra 256MB of on-board flash memory will encourage Arcade users to install all 128MBs of NXE, which will in turn provide Arcade owners more incentives to explore the console’s services and online capabilities.
The new hardware reportedly features 65 nanometer AMD GPUs (as opposed to the 90nm components featured in the console’s first edition), as well as a 150w power brick. Helped by the console’s rearranged interior, these measures are said to allow for far cooler running console, theoretically circumventing the key causes of 360 hardware failures.
Again, Microsoft is delivering details in a piecemeal manner. It remains unknown when the new Arcade units will arrive in both the US and UK. Edge is seeking comment on this matter.