In a savvy move that helps defray one of the big knocks on the Xbox 360 — that its storage options are limited — Microsoft will release a firmware update that allows gamers to store games and saves on portable devices, up to 16GB in size, that connect to the console via USB, Joystiq reports.

The move, due sometime this spring, adds an option the PS3 has always had to the 360, Joystiq writes:

It should be clear by now that Microsoft is simply pulling out of the Memory Unit business and not the highly lucrative Xbox hard drive business. With an artificial cap of 16 GB – still shy of the 20 GB hard drive that shipped with the original 2005 Xbox Pro and a fraction the size of the currently shipping 120 GB hard drive – USB storage support simply removes the onerous requirement for a Memory Unit on Xbox 360 Arcade units, and brings the Xbox 360 platform a feature that’s been present on the PlayStation 3 since that console’s 2006 launch.

Xbox 360 gamers, how will the new storage option change the way you operate?

Xbox 360 gaining USB storage support in 2010 update [Joystiq]

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