[citation][nom]jerreece[/nom]The Arcade has no storage. You have to use memory modules instead.[/citation]Yeah but you can use a cheap USB memory stick too now (up to 16GB per stick, up to 2 sticks installed at a time), which is plenty of storage if you don't download movies/games/expansions. It's enough for all your saved games, music, and some XBL games. If you need more, get a better model or buy/make a HDD.