Microsoft first rolled out at standalone 250 GB hard drive for its Xbox 360 game console in conjunction with selected game bundles—like Modern Warfare 2 and Final Fantasy XIII—but has not introduced the accessory as a standalone item with a $129.99 price tag, the same cost associated with its earlier 120 GB external hard drive. Microsoft has been increasingly encouraging avid gamers to install games on hard drives connected to the Xbox 360—those games, in combination with video and other sizable content from Xbox Live—make the expanded storage a welcome option for many gamers.
Reports have Microsoft continuing to offer the 120 GB external hard drive for the Xbox 360, albeit with a price cut that should put it in the $100 range. Industry watchers also expect Microsoft will eventually introduce support for USB-based storage. Although USB storage capabilities are unconfirmed, reports have Microsoft capping the capability at 16 GB: that ought to be enough space to load a few games on to a flash-based USB storage device, but not enough to compete with the space offered by external hard drives.
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