Microsoft released an update to the XBOX 360 today to allow for up 32GB of external storage through the use of two 16GB thumbdrives on the system’s two USB slots in the front. This update is free for XBOX live users who connect to XBOX Live and can be downloaded once your signed into your Live account. This recent update has also started SanDisk to start selling some XBOX branded thumbdrives as well.

via [PCWorld] & [XBOX]