Xbox Live's latest dashboard update also delivered an increase in the size of the USB hard drives the console will support. The Xbox 360 can now save to drives up to 32 gigabytes in capacity, double the old limit if 16GB.

Joystiq noted the capacity change and sought to confirm it with a Microsoft representative, who did: "The more our customers use their profile and download digital content, the larger the file size necessary to store that content and move it between consoles gets."

Xbox 360 USB data storage limit doubled to 32GB [Joystiq]