As part of the next Xbox 360 dashboard update, Xbox 360s will no longer recognize "unauthorized Xbox 360 storage devices." If, for example, you purchased Datel's 2GB Max Memory Card (still available at Amazon.com and can expand up to 16GB due to a replaceable Micro SD card slot) to store data, it will no longer work. Such accessories are not officially licensed by Microsoft and while they've been usable in the past, as of now, Microsoft is eliminating that option.
Xbox evangelist Major Nelson announced the change late last week on his blog. The response from the Xbox community was mixed (the first comment on Nelson's post: "Maybe if Microsoft released larger storage options at prices that weren't completely ridiculous then customers may not seek alternatives"), though many did not even seem aware these options were available to them.
The change in policy is because of cheating, according to a Microsoft spokesperson G4's Patrick Klepek talked to.
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1 word: MONEY
lol
$30 for 512MB vs $40 for 2GB? Disgusting.
Someone will pop up to say "MS is just trying to protect blah blah blah 'noble intentions' blah blah." But honestly, they put themselves in position to be blasted when they decided to overcharge for memory. If they were fairer, we wouldn't have had to seek out 3rd-party alternatives in the first place.
I didnt even know about such MU's available. To have been able to have 16gb in your MU would have been sweet. Faster access than the old 20gb (13gb really) hdd.
MS just needs to lower the licensing fees to third parties in order to become "official" licensed sellers. MS could be more enforcing that third party accessories are made in such a way to prevent modification and allow for homebrew access.
Than again...it is MS after all.
any better reason?
MS might say "Oh, by using any unauthorized device, it causes a system failure which is bad for you, users." and I might call it "BS"