Xbox 360 adding USB mass storage support in April!

Today, Microsoft announced that in the upcoming April Xbox 360 system update, it will be adding USB mass storage support.  There are two limitations though:

1. No matter the storage size the USB storage device, only a maximum of 16 GB will be available per connected device
2. The USB storage device will have to be formatted to a proprietary Xbox 360 format 

Despite the two significant drawbacks, it does make the Xbox 360 Arcade more attractive of an option because adding 8 or 16 GB of storage via thumb drive can now be done on the cheap.  Or gives owners more storage options for 360 HDDs that are nearly full.