Xbox 360 To Allow USB Storage In Spring Update

"Are we gazing onto the cusp of a new horizon, one where our Xbox 360 storage needs aren't shackled to overpriced proprietary hard drives? Probably not quite. Our best friends at Joystiq have managed to obtain documents (corroborated with multiple sources) showing that the folks in Redmond are mulling over an option to enable USB mass storage support for its game machine."

It appears that the next update for the Xbox 360 will enable you use USB Storage with your Xbox 360.  Do I hear cries of joy from the gaming community at the thought of being able to plug in a 500Gb USB drive for storing their games and downloads?  Well this is where you will be disappointed.  Microsoft in their infinite wisdom have set a max limit of 16Gb on the USB device you use. From what I can see, this is intended to replace the memory cards rather than allow you to use your own disk drives.  Hopefully Microsoft will get wise and change this at some point, but for now it looks like we still have to pay for the usual overpriced proprietary ones instead.