Microsoft has introduced USB memory storage for its gaming console. The new feature will be available with a system update and users will be able to store their data on external USB devices, providing easy memory expansion.

The external usb storage can be used to save game profiles, user data, demos and other content from xbox360 marketplace. It sounds like a pretty useful feature, but at present, the support for  usb device  is limited to 16GB but you might use two usb drives to extend the storage capacity to 32GB.

In order to use the new feature you need to get the latest version of xbox live update and and configure your system accordingly.Both USB flash drives and USB hard drives van be used after the update.