The Xbox 360 Arcade has 0 GB hard drive. It shipped with **256 MB (early) or 512 MB (later) of internal flash memory** — only for:
It cannot:
| Option | Capacity | Pros | Cons |
|---|---|---|---|
| Official Microsoft HDD (Fat: 20/60/120/250GB; Slim: 250/320/500GB) | Up to 500GB | Enables BC, installs, full DLC, reliable | Proprietary, used market only, $$$ |
| USB Flash Drive (FAT32, ≤32GB formatted by 360) | Up to 32GB (2×16GB max) | Cheap, plug-and-play, stores saves/DLC | No BC, no game installs, slow, 32GB cap |
| USB HDD (FAT32, ≤2TB, formatted by 360) | Up to 2TB | Massive space for DLC, videos, music | No BC, no game installs, external power needed |
| Memory Unit (MU) — Legacy | 64MB-512MB | Tiny, portable | Obsolete, tiny capacity |
Bottom line: Arcade = 512 MB flash. Add official HDD for full features. USB for saves only.