Microsoft has announced just how it plans to help those Xboxers without a hard drive to get the 128MB of free storage space needed to run the New Xbox Experience.

The dashboard upgrade is set for release next month, and when it was announced storage space would be required for it, Microsoft promised to offer "storage solutions" for those gamers with Arcade and Core machines.

So what's it come up with? An online initiative that once the console's serial number is registered on the website, will offer eligible users the choice between a free 512MB memory card, or a refurbished 20GB HDD for £12.99.

What will you opt for?