Microsoft is finally accepting the fact that games need to be allotted more space in this day and age and has raised the file size limit of XBLA games from 50 megabytes to 2 gigabytes, about a 40 times over size increase. What does this mean for the gamers? Bigger file sizes will allow for more content, which hopefully will lead to better longer games. We all know though, it is up to the developers doing the actual work to make those games (as even when dealing with 2KB great games were able to be made and are still enjoyed today).
Source: Gamasutra.com