a pending update to the Xbox 360's firmware that will allow owners to use USB flash drives as additional storage for media and game saves. Reinforcing that news today comes word of Xbox 360-branded USB sticks listed on Gamestop for preorder.
According to CNET sister site Gamespot, drives will be sold in 8GB ($40) and 16GB ($70) capacities, however their pricing raises some concern; it seems the USB flash drives will go for twice what normal ones cost.
So what's the incentive to buy an Xbox 360 USB drive? You'll get a month of Xbox Live and the drives are purportedly "preconfigured" to play nicely with your console. But here's a tip: there is no reason why any third-party USB flash drive wouldn't work with an Xbox 360 once the update is released.