While Microsoft has dropped the prices of all of its Xbox 360 hard drives on the market, a much more economical solution will soon be available. Xbox spokesman Larry "Major Nelson" Hryb confirmed earlier today what many have suspected for weeks--that the Xbox 360 will soon allow USB memory compatibility.
Xbox 360 owners will be able to connect up to 32GB worth of external memory to the system (16 GB per device) and save anything they would on a normal console's hard drive to it -- game saves, Xbox Live profiles, demos, and DLC. According to Hryb, flash and hard drives will both be supported, and an official Xbox 360 flash drive will be released soon by SanDisk. We've reached out to Microsoft to find out if other USB-based storage solutions (like memory cards connected to USB hubs) are also possible, and will report back when we hear an answer.