Last month, Microsoft launched the Xbox 360 Preview Program, a new system similar to that offered on Xbox One in which selected customers get to preview new features and updates planned for the system. In March, Microsoft addressed "common customer issues," like "improving the ability to troubleshoot common network issues from the 360 and adding a Network Connectivity test including Download and Upload speed tests."
This month, though, the Xbox 360 update will allow for larger external storage, one of the most requested features for the system.
According to Microsoft, the next update for Xbox 360 Preview Program members will allow the use of 2TB hard drives to store Xbox 360 data. For those who aren't part of the Preview program, this function will arrive later this year. Additionally, Microsoft will no longer reserve space in advance on your hard drive.
"If you are using 16GB of hard drive space for games – we will only take 16GB of space. And just like today – you will be able to use two external drives at a time," Microsoft Larry Hryb assured.