Microsoft's Marc Whitten has revealed that Xbox Live Arcade will be having a bit of a revamp in the coming months, in an attempt to improve the service.

Firstly, the general manager of Xbox Live said less popular, underperforming games are going to be removed in order to keep the service "focused on a section of high quality games".

The file size limit is also going to be increased to 350MB and a new, higher price-tier of 1600 Microsoft Points is set to be introduced as well.

Whitten described the moves as "a series of new policies along with a new internal approach and investment in the Xbox Live Arcade business going forward".

He also revealed that Microsoft would be putting its money where its mouth is, and launching a new fully-funded first party studio which will concentrate solely on high-quality digital content creation.