1up is reporting that Microsoft is lifting the 50 MB size cap for Xbox Live Arcade downloads. Citing anonymous sources, 1up states that the new maximum size for Arcade games can now be as high as 250 MB. With special dispensation from Microsoft, content can become as large as 650 MB. Officially, Microsoft is denying the changes to their program. However, it is known that Konami has already received an exception for Castlevania: Symphony of the Night. Microsoft’s reasoning for the 50 MB limit was initially to provide Core system users access to Xbox Live Arcade content, but with a 256 MB Memory Card coming, this limit may no longer be necessary. The changes to the file limitations may in part be related to the competition; Sony has no such limits for their downloadable content, and Microsoft may feel that additional resources for Xbox Live Arcade titles may be necessary to keep up.