Microsoft has announced plans at the Game Developers Conference to launch a 512MB Memory Unit for the Xbox 360 and an increase in the official size limit of Xbox Live Arcade games from 50 to 150 megabytes.

The 512MB Memory Unit, available worldwide beginning April 3, will retail for an estimated retail price of US$50. The 512MB Memory Unit will be pre-loaded with the hit Xbox Arcade game Geometry Wars: Retro Evolved from developer Bizarre Creations for a limited time.

Eight times larger than the 64MB Memory Unit, the 512MB Memory Unit gives Xbox 360 owners the ability to download exclusive content from any of the 45,000 Xbox 360 kiosks accessible at retail outlets worldwide.

Beginning today, the Xbox Live Arcade game size limit has increased from 50 to 150 MB, giving developers greater flexibility in game design and expanding the opportunity to add advanced game features while still keeping games compact.

This week at GDC, Microsoft will showcase forthcoming Xbox Live Arcade games from a cross-section of genres to the game development community:

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Boom Boom Rocket (Bizarre Creations)
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3D Ultra Minigolf Adventures (Wanako Games)
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Eets: Chowdown (Klei Entertainment)
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Jetpac Refuelled (Rare)
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Pinball FX (Zen Studios)