With the new Xbox Live Experience coming and the need to download the large file to install on the Xbox 360, those with consoles having less than 128MB were going to be left out in the cold. Microsoft though is
proposing an interesting solution. NeoGaf
has details that if you are a Core owner with less than 128MB of storage, you're eligible for a free 512MB card or a refurbished 20GB HDD for $20. Arcade owners with less than 128MB can get a refurbished 20GB DD and 3 months of Live service for $30. This could've all been avoided if Microsoft would've just given everyone an HDD like their previous Xbox but hey, at least it's a solution right?