GamesIndustry.biz dropped the news this morning in an interview with David Edery that the Xbox Live Arcade size limit is now officially 350MB. With larger titles like tomorrow's Penny Arcade coming out and a 512MB memory card, I think everyone saw this coming. It will be interesting to see how this new limit will let the developers "focus on innovation". In addition to covering this revelation Edery touched on how XNA and the community arcade will benefit the Xbox Live Arcade scene and his take on the long certification process.