Major Nelson has just officially announced that Xbox 360 system update has been released and available publicly via Xbox LIVE, and as I’ve informed you before, this system update brings support for USB flash drive.
Soon, when you sign-in to Xbox LIVE, you’ll receive a prompt to update your console to the latest mandatory firmware update. If you’re already signed into Xbox LIVE, then you may be automatically signed out and asked to accept the latest firmware update.
Once your console update is completed, then you’ll be able to plug couple of USB flash drive so that all your game progress, profiles, game saves, contents, and other Xbox 360 related stuff can finally be taken on the move.
The maximum USB 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.
As announced before that Microsoft will be partnering with SanDisk to release an Xbox 360 branded USB flash drive. Now it is also unveiled and available for pre-order through Amazon.

The prices are, 8GB for $34.99 and 16GB for $69.99. This Xbox 360 USB flash drive will come pre-configured and ready to use out of the box.

