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.

GameSetWatch has the defacto answer to the question that has been running around with the GDC coverage this week. Did Microsoft change the royalty rate for Xbox Live Arcade indie developers? The answer seems to be "yes" for games published under Microsoft's guidance and no for those published under other companies like EA, Activision and Sierra. Don't get mad though as it seems that it may not be to screw the little guy over. The changes seem to help out on some things like increasing rates for games that do well and help in localization and game ratings. If you are into the industry side of the Arcade this is a definate read.

It took only a short amount of time, but 1up elaborated on their Quarterman rumor that Goldeneye for XBLA was shelved. Like all things in the business world, the project was stopped due to money. Nintendo and Microsoft could not come to an agreement on how much each one gets for their portion of putting the game onto Xbox Live Arcade. The saddest part is that the game was only about 2 months from completion and may now never see the light of day. Oh well.

Rare Classics Before there was Halo, the kind of console FPS was by far Rare's N64 powerhouse Goldeneye. The title not only perfected console FPS but created what is still in the short list of games based on a movie that were actually a good game. It seems like Goldeneye is finally about set to find it's place as the Nintendo/MGM/Microsoft/Rare/Activision licensing issue is rumored to have been straightened out. No doubt with a lot of cash. That's right kids, Goldeneye may be coming to Xbox Live Arcade. Xbox Evolved, the site that broke this rumor, is reporting that the title will be released shortly before the release of the next James Bond game. I do recall reading a similiar rumor a few weeks ago about Goldeneye for XBLA being done but shelved due to issues. These two rumors combined may point to this rumor actually being true. Xbox Evolved believes Perfect Dark and Banjo-Kazooie will also be heading to Xbox Live Arcade. The Fast and the Furriest Xbox 360 Fanboy has been informed by an insider of the possible Rare XBLA game that is in development. The Fast and the Furriest is a sports based party game that makes use of the Xbox Live Vision camera and Rare's extensive back catalog of furry creatures. Minigames included in the game will reportedly include the 100 yard dash, hurldes, tip-tup curling and bungee run. After the release of the title, downloadable content will expand the library of minigames available. Thanks ashn0d.

Today, the winners of the Dream-Build-Play contest were finally announced at the launch of Gamefest 2007 (a Microsoft-run development conference focused on XNA). After whittling the field down to 20 finalists the panel of judges have finally selected the winner. Actually, I should really say winners because the top 4 contestants are all being offered publishing deals with Microsoft to bring their games to XBLA. So who won and what are the games like? Read More.

Let those who worship the almighty two-fer rejoice! We're back in business.

This week brings us Hexic 2 in the new category (aka 800 MSP) and Ecco the Dolphin slotted as the retro release (aka 400 MSP).

Can the multiplayer of Hexic 2 (or maybe the achievements?) lure you back even though the first game was virtually free? And does the idea of being a dolphin excite you or disgust you? So many questions to answer before Wednesday...

Screenies can be found on the Gamerscoreblog Flickr: Ecco and Hexic 2

After the jump are the typical selling points of each game.

[via Gamerscoreblog]

[Update]: Adding pricing info.

Just announcing the soon to arrive XBLA games was not enough for Microsoft. They went as far as sending out screenshots of the upcoming games. Tons of 'em.

Xbox360Fanboy's got them all up in convenient galleries but I'll make it even easier for you loyal XBLArcade readers. Below are direct gallery links for whatever XBLA flavor you're craving at the moment. That way you can skip right over the reading part at Xbox360Fanboy. I mean, who would want to read text when you can look at purdy pictures?

Hexic 2

SPFIITHDR

War World

Puzzle Quest: CotW

Okay, if you wanna read the post, it's here.

[via X360F]

Sad that this Wednesday lacks the current trend of two-fers? Getting another retro title this week left you cold? Don't despair. Prepare for things to "heat up" very soon. The games coming out soon are "sizzling". Or so Microsoft would have you think.

The good news:

• Ecco the Dolphin, Hexic 2, and War World all coming out this month.
• GEON: Emotions, Puzzle Quest: Challenge of the Warlords, Space Giraffe, Streets of Rage 2, and Super Puzzle Fighter II Turbo HD Remix all arriving "in the coming weeks".

The bad news:

• With three Wednesday's left in August and three games listed, kiss your two-fers goodbye.
• No word on Sensible World of Soccer, Speedball 2: Brutal Deluxe, Street Trace:NYC, and many other games starting with the letter "S".
• A personal note: Where is my Mutant Storm Empire?!?

Feel free to add your own angry, sad, or psychotic, "where is _____?!?!?!" comments below.

Full "Media Alert" (cough*press release*cough) after that clicking thing you do below.

[via Gamerscoreblog]

I bring you word of a massive XBLA achievement update (the shamlessly stolen headline probably tipped you off, huh?).

Xbox360achievements.org has come through again with achievement details for Hexic 2, Marathon: Durandal, and War World. No pretty pictures to look at, but plenty of interesting things to ponder after the break.

It wasn't even a week ago when Chris Early was interviewed by Gamasutra about the state of Xbox Live Arcade, but today Gamerscore blog has announced that Chris Early has been promoted to the position of General Manager of Games for Windows Live from his spot as the studio manager for Microsoft Casual Games. Bryan Trussel, who was Greg Canessa's replacement earlier this year, will be replacing Chris starting next week. I'm sure the entire community of XBLArcade.com wishes both of you a hearty congratulations and good luck on your new positions.