Microsoft is on its way to add one of the most requested features in Xbox 360. The 2010 software update will give Xbox 360 USB storage support, which means users will then be able to download and run Arcade games, DLC, save games directly off the USB storage device.
Although a good news for most gamers, this support will come with a restriction. No matter how big your storage drive is, Xbox 360 will only use 16GB of space in addition to the 512MB required for system partition. This of course is less, which is why Microsoft will allow users to hook two drives together so that they can get a maximum space of 32GB.
Head over to Joystiq to read more details and pictures of the same.