Joystiq have reported in the last 24 hours (I am not figuring what time in GMT the American report came through), that they have confirmed that an update for the 360 in the spring will lead to the system being able to use non-Microsoft produced storage devices for saved games, DLC and profiles. But wait...
You'll still need a 360 hard drive
Well, you will do if you feel that the 16 GB and 512 MB aren't going to be enough for your gaming needs, and in a lot of cases that paltry size certainly will be unsatisfactory. Essentially the update, according to Joystiq, will mean that any external hard drive you use will be formatted by your 360, and cause the 360 to only use up to 16 GB and 512 MB of the external drive's memory. That's less than the 20 GB hard drive that used to come with the Premium system.
However...
This does mean that you'll no longer need to buy those annoying 512 MB 360 memory units. Instead you could carry your gamertag and save files around on a 1 GB (has to be that size, minimum) USB device.
Microsoft have yet to officially announce all this mind.
Related links
Joystiq article on the matter
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