On 11th August 2009 Microsoft released a 'scam update' via their Live service to all consoles. Users who bought the X-Box Arcade console (who do not have enough room for the update on their memory cards) have basically kicked off their console and cannot play any games whatsoever, even offline, unless they update. However, updating requires at least the purchase of a new memory card or hard drive. It's basically just another way for Microsoft to scam innocent people out of money and those that don't pay are forced off their gaming console which they've already paid good money for.
Microsoft are a SCAM!!!