Xbox 360 to support USB memory devices up to 16GB?

Xbox 360 USB memory devices may be supported soon. But won't replace hdd
Rumors are floating around the internets that Microsoft is planning to open up the Xbox 360 to support USB memory devices under 16GB via a firmware update.

Joystiq reportedly got their hands on a memo via a “senior software development engineer” for Microsoft which shows their upcoming support for the memory devices. According to the memo, Microsoft considers USB memory support “necessary due to increased market penetration of high-capacity, high-throughput USB mass storage devices.”

Though the fact that the PS3 supports USB memory devices out of the box also probably has something to do with it.

You would be able to store your gamer profiles, game saves, and entire titles ripped from a disc onto the USB memory device, although you’ll have to have the disc in the drive for verification.

Microsoft will apparently artificially cap the amount of memory you can use for the 360 via USB devices at 16GB, meaning that replacing the actual hard drive with a much bigger one is something that you’ll still need to do through Microsoft. This will likely upset people who aren’t willing to pay over $100 for 120 GB hdd (I got my 500GB for my laptop for less than $100). And Microsoft is apparently prepping a $250 GB HDD for release on March 23rd at a price of $130.

This is all still speculation, I suppose we’ll learn soon enough.

Via GameSpot