Microsoft has released the newest update to allow it’s XBox 360 console to use USB memory sticks for your storage. It has a 16 GB limit, and you can use any USB drive you can get. Of course, Microsoft will be selling it’s own branded drives for a few bucks more than what you can buy from any other vendor: $70 for 16 GB or $40 for 8 GB. A little steep for something that normally costs so little.

Microsoft has been aggressively upping the storage ante for its Xbox 360 console of late. Two weeks ago, the Redmond outfit released a 250GB standalone hard drive with transfer kit after previously saying the company had no plans to do so. Could Blu-ray be next? Don’t hold your breath.