When next month's Xbox Live update hits, Major Nelson has revealed that non-Microsoft endorsed storage devices will refuse to work with updated Xbox 360 consoles.
All those "unauthorized" memory units will be blacklisted, so if you've backed up profiles and saves you'd best "move it back" or lose it all. Only those licensed for Xbox 360 will work.
"When Preview Program members start receiving the Xbox 360 system update next week, one of the changes is that unauthorized Memory Units will no longer work with the Xbox 360. If you’ve moved your profile or saved games onto one to “back it up,” you’d better move it back onto an authorized Xbox 360 storage device prior to taking the update," Major Nelson.
"If you continue to use an unauthorized Memory Unit after the update, you will not be able to access your stored profile or saved games." Microsoft of course prefer you use their storage devices, which are greatly overpriced when compared with third-party hardware.
A 120GB official Xbox 360 Hard Drive is £97.86 in the UK, whereas a 2TB hard drive retails for £134.99. A major price discrepancy there... Then there's the memory card like 'Memory Units' at £29.99 for a measly 512MB. For about £13.39 you could get a 2GB flash drive.
Microsoft has no excuse for this obvious money-grab. It's a big blow to an otherwise stellar sounding dashboard update for Xbox 360s everywhere.