Xbox 360 USB Support Update Now Live
Posted April 6, 2010 by Jereme Puik

We received an email today from Miscrotsoft detailing that the next time you sign on to Xbox Live you'll be promted to an update. This update refers to the recently confirmed USB support for Xbox 360 consoles. This will give you the chance to connect up to two USB FlashDrives to your console for up to 32GB of extra space.
While you may be able to use third-party flashdrives, the performance is all based on quality and speed of the specific drive and some of them may not even provide an equal level of performance. Microsoft will be releasing its own Xbox 360 branded USB flashdrives in May supporting a storage of 8GB for $34.99 and 16GB for $69.99.