Here's why:
* Storage: The Xbox 360 Arcade came with a 250GB hard drive. This could hold a lot of games, but the exact number depends on the size of each individual game.
* External Storage: You could add external hard drives or USB flash drives to expand your storage capacity, allowing you to store even more games.
* Digital Games: With digital games, you're not limited by the size of the hard drive. You can download and install as many games as you want, as long as you have enough storage space.
So, the real answer is that the number of games an Xbox 360 Arcade can hold is limited only by the amount of storage space you have available.