Microsoft no longer charges developers for title updates to Xbox 360 Arcade Games. Microsoft's Larry "Major Nelson" Hryb confirmed via Twitter that as of April 2013 the company stopped the fees, which notoriously led the creators of games like Fez and Iron Brigade to eschew updates.
Microsoft originally allowed XBLA developers one title update gratis, but stipulated a $40,000 fee for each recertification after that point. Eurogamer reports that Microsoft reserves the right to charge if a developer excessively resubmits its game. Its anonymous developer sources also say the elimination of fees extends to retail releases as well as XBLA.
Fez creator Phil Fish tweeted that he plans to get in touch with Microsoft to see if the change is retroactive. That could finally bring the original Xbox 360 version in line with the PC edition of Fez, which launched in May.