A couple of days ago, we talked about the new Xbox 360 dashboard update rolling out to the masses, and here is an interesting bit on this new dashboard update. Apparently, Microsoft has raised the USB storage capacity to 32GB, making good use of the ton of USB flash drives that you own from trade shows and the ilk, turning those into a viable storage option. Previously, the accessible storage of a USB device on the Xbox 360 stood at 16GB, regardless of how much storage the plugged in USB device has. This is definitely good news for those who own an Xbox 360 without any large capacity hard drive inside. Microsoft has acknowledged the doubling in USB storage capacity as well, although this was done when they were contacted by Videogamer.com instead of doing so via an official channel such as a tweet or Facebook update. What do you think?