In March 2010, Microsoft allowed users to connect USB and hard drive devices to the console but only allowed a maximum storage space of 16GB. The new dashboard update this fall has increased the size to 32GB.

"The more our customers use their profile and download digital content, the larger the file size necessary to store that content and move it between consoles gets," a Microsoft spokesperson said. "Therefore we increased the size of the memory to enable our customers to take more of their Xbox profile with them on the go."

This story was first reported by Joystiq.