The latest update for the Xbox 360 brings with it the ability to use an external USB drive with the console.

So those of you with a small capacity hard drive on the Xbox can breathe a sigh of relief if space was running out.

From now on, if you want to install a chunky demo, for instance, you can simply save it out to an external storage unit via USB.

Not just demos, but saved games, profiles and all sorts can be diverted onto external storage instead.

You’ll be able to use flash drives, or full external hard drives, although Microsoft recommends the former.

The one restriction is the maximum space you can use on your external storage is 16GB.

The update will go live at some point today.