USB storage coming to Xbox 360?

New functionality to come via a spring 2010 system update.

According to a Joystiq report, based on a document authored by a senior software development engineer at Microsoft, USB Mass Storage Device Support on Xbox 360 is coming to the platform via a 2010 system update - said to be scheduled for the spring.

The update will allow Xbox 360 users to save and load game data from USB devices. This will include downloading Xbox LIVE Arcade games, Xbox LIVE Indie games, Games on Demand, DLC and Title Updates.

Interestingly, the document also suggests it may be possible to "support previously infeasible operations-such as installation of a full disc-based title."

The minimum capacity USB storage device supported will be 1GB, and while there appears to be no limit on the maximum size, formatting on the device will limit users to accessing a maximum of 16GB - ensuring there remains a reason to purchase a hard drive.

The 16GB limit can be increased, however, by using two devices to bring the total storage to 32GB.

With USB storage available cheaply, the update would make the Xbox 360 Arcade model - no included hard drive - a more attractive option.