Major Nelson has officially announced that Xbox 360 will support USB mass storage and the system will be updated on April 6.
After the update, you will be able to connect and access two USB flash drives at the same time which will allow you to store demos, game saves, game progress, contents, profiles and much more.
The maximum flash storage size it will support is 32GB, which means each flash drive of 16GB. After connecting any USB storage flash drive to your Xbox 360 you have to manually format and configure it by going to the memory section.
Microsoft will also be partnering with SanDisk to release an Xbox 360 branded USB flash drive in May which will come pre-configured and ready to use out of the box.
According to Major Nelson,
“On April 6th, we will be releasing a system update over Xbox LIVE for your Xbox 360 that will allow USB flash drives to be used for storing profiles, game saves, demos and more. I’ve been testing this feature out for a few weeks, and I have to say it’s really great. Once you take the system update on April 6th, you’ll be able to connect your USB flash drives to your console and head over to the memory section to configure your new storage device. Once you do that, the system will conduct a one time performance and integrity check to confirm the drive is working properly. You will then be able to configure how much storage to use on the device, up to 16 GB [each].”

