Has anyone heard of this before?

Running a custom Linux system, x360key is capable of immaculately emulating the optical disk drive in Xbox 360, allowing you to play all your Xbox 360 (and Xbox 1) games from any USB media. It is compatible with all Xbox 360 models, both Fat and Slim, and offers advanced features such as emulation of the AP25 protection.

After more than a year in development We are proud to announce one of the most sophisticated backup loaders the world has ever seen. Backed by a team of hardware experts and some of the most renowned and respected members of the Xbox hacking community We have no doubt this will be an instant success!

We are now taking preorders and the first shipments to distributors are expected to be sent out in mid-July.

http://x360key.com/

Features
User friendly: intuitive interface, no soldering required
Compatible with all fat (and soon slim!) Xbox 360 models
Supports most Xbox 360 and Xbox 1 games
Supports most file systems, including NTFS, EXT2/3/4, and Mac OS X Extended
High speed USB2 interface
Stylish USB control pad for selecting games and controlling your x360key
Powerful embedded Linux system running from Micro SD card (included)
Linux firmware fully updatable from USB media
FPGA fully updatable from USB media via built-in, in-system JTAG programming
Recovery mode - it is always possible to recover from a bad flash
No drive flashing or JTAG hack required
AP25 protection emulation

In A Firmware Coming To You Soon:
Support for all slim Xbox 360 models
Web Control Panel *

Work in progress:
Loading games from NFS and Samba shares*
Xbox Live support
Backup original Xbox 360 games to USB hard drive

* Requires WiFi dongle (sold separately)