Update: Shacknews spoke with Xbox Live global marketing manager Jeremy Wacksman on the subject during a meeting at the Game Developers Conference.

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.

Capcom isn't leaving PC gamers in the dust when it comes to the 2D remake of Bionic Commando.

The GRIN-developed Bionic Commando Rearmed will arrive on the PC either simultaneously or within a week of the console versions, Capcom producer Ben Judd told Shacknews.

The process of adding necessary copy protection was the provided explanation for the possible release lag. The studio is considering digital distribution methods, but has not yet decided on a platform.

Bionic Commando Rearmed is set for a May release on the PlayStation Network, Xbox Live Arcade, and PC.

Capcom has released the first media of Bionic Commando Rearmed, the GRIN-developed remake of the original 2D Bionic Commando that was revealed yesterday.

Included in the barrage of assets were screenshots, character artwork by Toshiaki Mori, and a trailer.

Among other features, Rearmed sports 2 player co-op and online leaderboards along with the ability to unlock content in the GRIN-developed 3D Bionic Commando sequel, which hits PC, PS3, and X360 later this year.

A digitally-distributed title slated to be available exclusively from online marketplaces, Bionic Commando Rearmed will be downloadable on PC, PlayStation 3 and Xbox 360 later this spring.

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A remake of Capcom's original NES classic Bionic Commando, entitled Bionic Commando Rearmed, is being developed for Xbox Live Arcade and the PlayStation Network, Capcom revealed today.

Not to be confused with the series update announced late last year, Rearmed is a reimagining of the original title, upgraded with 3D graphics a la many previous ports of its kind.

In addition to enhanced visuals, Bionic Commando Rearmed will also feature two player offline cooperative play, new uses for the bionic arm—such as tossing objects and enemies—and a reconstructed story that better resembles the original Japanese version; Nazis will be now called "Nazis," not "Badds".

Capcom expects to release Bionic Commando Rearmed this spring. Check back tomorrow morning for screenshots, artwork, and other media.