USB storage devices over one gigabyte can be used to add up to 16GB of space for everything from profiles and game saves to downloads after installing the mandatory update, which users will be prompted to download when they sign into Xbox Live.

Microsoft also offers an FAQ on USB storage. Unsurprisingly Microsoft recommends its own branded flash drives "to ensure the most seamless experience and optimal performance." The 8GB MS drive is listed at $40 by retailers while the 16GB is $70.