Joystiq recently was informed by two trusted sources of a new Spring 2010 storage update. A senior software development engineer at Microsoft is quoted as saying that due to, “increased market penetration of high-capacity, high throughput USB mass storage devices, a 2010 Xbox 360 system event” will allow users to transfer data to and from an external memory unit greater than the abysmal 512 MB ones Microsoft already produces. Users will be able to install Arcade games, Indie games, Games on Demand, DLC and Title Updates to the USB memory unit. You will even be able to install your games to the USB memory unit as well.
[Via Joystiq]
I would hope so. Right now you can store media files on a usb device and play them back on your Xbox 360 so surely this will replace the memory cards. I hope this happens because I have a lot of games I play regularly that I would like to install to a hard drive and 20GB is just not enough.
This hasn't been officially announced by Microsoft yet, so we have to assume. It makes the most sense that it would be able to be used but there is not guarantee.
Will you be able to use a external storage device in lieu of a hard drive?