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A step in the right direction even if it is limited to 16gb*. Good news for anyone who buys an Arcade unit too since you can buy cheap USB powered HDD's for next to nothing these days (bought a 60gb one years ago for just £30, can't imagine how much a smaller one today would cost).

*I say limit. I've only got a 20gb drive and I haven't come close to filling it.
 
A step in the right direction even if it is limited to 16gb*. Good news for anyone who buys an Arcade unit too since you can buy cheap USB powered HDD's for next to nothing these days (bought a 60gb one years ago for just £30, can't imagine how much a smaller one today would cost).

*I say limit. I've only got a 20gb drive and I haven't come close to filling it.

I picked up a 8GB flash drive for about 20 bucks on sale at target
 
Yea, the 16GB limit is a little odd, but it is a step in the right direction. I mean, I still have like 50GB free on my 120, but I have a bunch of spare flash drives laying around. I could move all of my saves, DLC, XBLA games, demos, etc to the flash drives, and just use my 120 for more full game installs.

Wishful thinking here, but maybe if they see enough negative reaction to the 16GB limit, they will change it. As far as I can tell, there is really no reason to limit it. If the rumors of the new "slim" 360 not using the standard HDD units is true, this would be a great compliment. Buy one of those, and just attach a cheap 1TB drive for all your storage. Again, wishful thinking, I know. But it would be a great way to do it.
 
guess MS doesnt want anything to take away Sales from there 120 and there 250 hd thats coming out soon.:rolleyes:
 
More details given by Major Nelson today
http://majornelson.com/archive/2010/03/26/USB-Memory-Support-for-the-Xbox-360-coming-April-6th.aspx

We’ve also enhanced the memory management functions, so you’ll be able to have better control on what you want to copy or move between storage devices.



A couple of points:

* You can have 2 devices connected to the console at a time, enabling up to 32GB of simultaneous storage.
* The system won’t just configure the device once it is connected to the console. You’ll need to head to the memory area in system settings, select your USB Device, and choose from Configure Now (Format and Configure the Full Device), or Customize (you can choose how much memory you want configured for Xbox360 from the free space on the device.)

While any flash drive can be used, we are partnering with SanDisk to release an Xbox 360 branded USB flash drive in May that comes pre-configured out of the box and ready to go. I’ll provide links to those drives once they’re available. Until then, starting April 6th (when we release the system update) you can pop any flash drive over 1GB into your Xbox 360 and configure it as storage.
 
Bought a 16GB to free up some space off my 20GB internal. Gonna move my Fallout DLC to it until I finally manage to finish it.
 
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