Every year, consoles get a little bit closer to traditional computers. Now it seems that the Xbox 360 will support USB mass storage. Joystiq reports that an internal Microsoft document hints that consumers will soon be able to save and load their game data on USB mass storage devices.
This update should hit around Spring of 2010. Gamers will be able to download Xbox Live Arcade games, Indie Games, and Games on Demand (plus DLC and Title Updates) to their USB device. Disc-based games will also be storable on USB devices. Unfortunately, the disc will still need to be inside the machine for authentication.
The largest USB drives allowed will be 16 GB. There will be a limit of no more than two external USB devices attached at a time. That means up to 32 GB of total USB storage (minus the 512 MB required as a system partition).