What do you mean by the 360 doesnt have enough system memory? 512 MB isnt enough lol
Some devs have stated that they won't do certain games on the consoles(360/ps3) because they don't have enough memory. 512mb is enough for some games but for games like graphic intensive mmo's 1 gb would have been the sweet spot. I think oblivion would have benefited alot from 1gb too. It's the only way you can explain the graphical problems some games are having.