MS consider 360 storage options
Arcade users can still get New Experience?
If you're a basic/Arcade Xbox 360 purchaser, you might be concerned that you're on the brink of missing out on a whole host of fun when Microsoft rolls out their New Xbox Experience via an epic Xbox Live dashboard update.
However, those with a hard-drive-less console are still firmly in Microsoft's plans, the company confirming that Redmond are plotting new storage solutions for these users.
"The new Xbox experience will require 128MB of free space," Larry Hryb (or Major Nelson, if you prefer) told Xbox 360 Fanboy.
"While we expect the majority of consumers to download the New Xbox Experience without a problem, a small percentage of Xbox 360 owners do not have enough memory to accommodate the update. To help ensure all Xbox LIVE members are able to download the New Xbox Experience and enjoy its new features, Microsoft will be offering storage solutions to the Xbox Live community."
Hryb hints that news on an alternative storage solution should arrive via Xbox.com in the coming weeks. We'll be sure to keep you posted.

Comments
The catch will be.... Xbox live silver and gold members will get server based storage... Your console will have to be Online for this free feature to work. I dont see them dealing with this the memory card way when xbox live servers are just huge hard drives anyway. Imagine the memory card hardware cost, then the mailing cost, then the customer service for the people who cant figure out whats going on.
Why? when you can park your account in the sky. Down side... login will require you to download your 120 meg account each and every time... about 45 seconds. I will stick with the hard drive.
I will eat me shoe if Microsoft give us the patch for 3rd party USB hard drives. This would be the cherry on top of the price cuts with customers being able to step around storage problems and focus on Netflicks and live downloads. Its the last card that IMHO needs to be played. Free us from your storage bondage Microsoft and we will open our wallets for the CONTENT that we want. Who really wants to spend a hundred dollars + on a 20 gig hard drive? when you can get 500 gigs (on sale) for the same price.
Ya so they are completely screwing a bunch of people. Sucking money out of us because they can! F*** THAT!