Up To 2TB Of Storage Coming To Xbox 360 This Year
The Xbox 360 will be able to take advantage of more hard drive space later this year.
Those who are part of Microsoft's update preview program can start using larger hard drives with the next update. Normal Xbox Live users will have to wait until later this year. You will also be able to use more than one hard drive, as outlined on Larry "Major Nelson" Hryb's blog:
We will also no longer reserve space in advance on your hard drive. If you are using 16GB of hard drive space for games – we will only take 16GB of space. And just like today – you will be able to use two external drives at a time.
The normal qualifier, that some drives may be incompatible or have performance issues is still present, and will likely always be present.
[Source: Major Nelson]
This is great news, but something I would have liked when I was still predominantly using my Xbox 360. Better late than never, I suppose.