Now you can upload APK's up to 4 GB.

Yes,
Google has announced that from now on you can upload APK’s up to 4GB. This is an effort to accommodate apps that require more local storage.
Previously Google had made a limitation of 50MB for apps but due to the intervention of high speed 3D games and other Google has decided to increase the file size to 4GB.

Google is also limiting the size of developers APK files to 50MB because it said it wants to preserve secure on-device storage. As a compromise, the company is letting programmers attach expansion files to their APK. Each app can be bundled with two expansion files, with each one comprising up to 2GB.

For most newer devices, the expansion files will be downloaded automatically when a user installs an app from the Android Market, and the refund period won’t start until the expansion files are downloaded.

At Google I/O 2011, Google announced that it would eventually allow developers to host up to 4GB of assets on the market. But the thing is the total apk size for the Android Market is still 50MB but now the developers can have two additional expansion files that can be up to 2GB each. The developer can store these expansion files on the Google servers instead on their own and they will get downloaded along with the apk file. Also, the user will be made aware of the final size of the app before downloading it.

The advantage of using this method over the one currently employed by the developers is that the Android Market allows downloads to run in the background and will even let you pause and resume the download.

For the newer devices, the expansion packs will be downloaded along with the APK itself, while on older devices, the packs will be downloaded on first run using a built in download library.

Android Developers now enjoy the freedom to create high quality content without having to cut corners in order to meet the 50MB file size limitation.

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