XBLA no longer nerfed?

We had our own inside sources and could never really say much, but now that 1UP’s Luke Smith is babbling about it, we may as well come clean with some info that many have speculated but we’ve known about for a little while now: Microsoft is raising the XBLA download cap to 250MB.

What does this mean? This means no more shatty Live Arcade games that are gimped because they have to stick to a 50MB limit. Hello innovation.

From Lukems:

The Xbox Live Arcade file size was capped at 50 MB to accommodate consumers who purchased the hard drive-less Xbox 360 Core SKU (those consumers had to use one of Microsoft’s memory cards). Under condition of anonymity, sources revealed to 1UP that the file size for Xbox Live Arcade titles has been increased from 50 MB to 250 MB and with Microsoft’s approval, that size can be expanded to 450 MB. When asked for comment on the reported change to file size, Microsoft said, “We do not comment on rumor and speculation and so we can not confirm that rumor.

I guess you could still call this a rumor, but believe us, this is and will be made official in the near future.