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Xbox Live Director of Programming Larry Hryb made the announcement this morning through his Major Nelson blog. "This is an important update as we continually strive to improve our products and we could not do so without the help of our great Xbox community," Hryb wrote. "As part of the preview program, you will receive a copy of Halo: Reach along with other possible rewards." 

Digital Foundry reports that "a highly placed development source" has informed it that Microsoft's new format will include an extra 1GB of storage space for Xbox 360 game discs. According to Eurogamer's hardware blog, developers are currently able to allocate 6.8GB of game data out of a maximum of 7.95GB on a typical dual-layer DVD.

The remaining 1GB is reportedly allocated to DVD Video and antipiracy. According to the site's source, Microsoft will be doing away with the video segment of this 1GB partition, thus being able to free up more space for game data.

As part of the new System Update Preview Program for US-based Xbox 360 owners, Xbox Live users can sign up to test the program and receive a free copy of Halo: Reach. However, there's a catch: Microsoft warned that it is possible that the beta test will result in a nonfunctioning console.

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