Im not really a gamer...just came across this on another site.
Microsoft has made a new move today that will likely anger many current Xbox 360 users; locking out unlicensed storage devices that are not sold by the software giant.
"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," writes Xbox Live's Larry Hryb, via MajorNelson.
The new update is the one that adds Twitter, Facebook and Last.fm integration and was generally highly anticipated by the gaming community.
As an example of what is coming, the 512MB Microsoft Memory Unit sells for $30 USD while unlicensed storage devices such as the expandable (up to 16GB) 2GB Datel Memory Unit sells for $40 USD. You will now be forced to buy the lower capacity, much more expensive Microsoft drive if you want to have access to your gaming life.
"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. If you continue to use an unauthorised memory unit after the update, you will not be able to access your stored profile or saved games," adds Hryb.
source:Microsoft update will lock out unlicensed Xbox 360 storage devices