Game blog Joystiq has screens of what it says is an upcoming build of the Xbox 360 system software that will allow USB mass storage devices to serve as memory units.
The feature, which Joystiq says is due out in the next few months as part of the spring system update, will turn any USB-based storage device–be it an external hard drive or a flash drive–into a memory source up to 16GB, which will work just as the Xbox 360 hard drive and memory units do. This includes allowing users to copy games to these devices, instead of having to spin up the 360’s disc drive, as well as saving Live Arcade games, movies, and downloadable content.