NEWS - Tuesday, November 13, 2012
Xbox 360 maximum USB storage limit increased
Asked if the Xbox flash drive storage limit had officially increased from 16GB to 32GB during the most recent Xbox Live update, a Microsoft spokesperson told us, "Yes. The more our customers use their profile and download digital content, the larger the file size necessary to store that content and move it between consoles gets. Therefore we increased the size of the memory to enable our customers to take more of their Xbox profile with them on the go."
Source: http://www.joystiq.com