Wacksman acknowledged that Microsoft is willing to make concessions from time to time, but did not stipulate whether the company would do so in the case of Bionic Commando Rearmed.

"Most developers don't run into problems," said Wacksman. "We're pretty happy with the system we've got. By and large the majority of our games fit under that limit."

Original story: The 150MB file limit imposed by Microsoft on all Xbox Live Arcade titles will result in the downgrading of textures on the XBLA version of Bionic Commando, according to 1UP.

Capcom producer Ben Judd says that the game will have higher-resolution textures on both the PlayStation Network and PC when it is released in May. "That's surprising to hear," said Microsoft's VP of Xbox Live John Schappert. "Last I checked it was Capcom that had an exception to our file size with Street Fighter II [Hyper Fighting].. We raised our limit to 150 megs, which seems pretty darn great.

"I don't think it has limited our games in any way. Look at Rez HD. Look at Poker Smash. Look at Undertow. These are very, very, very good games."

Microsoft currently has no plans to raise the size limit.