On April 6th, Microsoft will finally implement support for a long-overdue Xbox 360 feature. With the next system update, the Xbox 360 will gain the ability to read USB flash drives (and hard drives), providing users with the option to expand their storage space for demos, game save files and any other data that’s hogging up hard drive space or may be worth backing up.

This new functionality will work with flash drives between 1GB and 16GB in capacity — even if a larger USB hard drive is used, the 360 will only recognize 16GB — and up to two drives can be connected at once, effectively doubling potential storage capacity to 32GB.

To no surprise, SanDisk will be cashing in on the update, partnering up with Microsoft to release pre-configured, Xbox 360-branded flash drives in May. Capacity options and pricing have not been announced at this time.

USB Memory Support for the Xbox 360 coming April 6th [Major Nelson]

The PSPgo comes with 16GB of storage capacity built in, but if you intend on playing and storing lots of games, movies, music and pictures on it you’re probably going to need some new memory cards. Enter SanDisk, who have just launched a new line of memory card products targeted at portable game devices, the PSPgo in particular.

The expanded, gamer-targeted memory card product line does include a new 8GB SDHC Memory Card for the Nintendo DSi and 32GB Memory Stick PRO Duo and PRO-HG Duo Gaming Cards for PSP-2000 and PSP-3000 systems, but the focus here is really on Memory Stick Micro M2 cards and adapters for the PSPgo.

SanDisk’s Micro M2 cards come in 2GB, 4GB, 8GB and 16GB capacities at respective prices of $27.99, $44.99, $74.99 and $142.99. And for $17.99 you can also pick up a Gaming Compatibility Pack containing a Memory Stick Micro M2 to Memory Stick PRO Duo adapter and Mobile Memory Stick Micro M2 reader so you can use your Micro M2 cards in other Sony devices and/or transfer data to a PC via USB if needed.

[Update] One important thing to note about the prices: they are only the suggested retail prices. The actual on-the-shelf prices are determined by each individual retailer and are generally much cheaper than the suggested prices. For example, Walmart has the 16GB Memory Stick Micro cards for $120 as opposed to the $143 MSRP. And you’ll find even cheaper deals on Buy.com.

“Many of the new portable gaming systems offer substantial downloadable content for gamers to enjoy, and our gaming memory cards give consumers the added storage capacity they need,” said Tim Sutton, product marketing manager, gaming, SanDisk. “Downloadable games for the PSP system can consume more than 700 megabytes (MB) of memory each, not to mention the large file sizes of movies and TV shows which boost demand for expandable storage.”

“Gamers are increasingly using their handheld systems for non-gaming activities, with nearly half of U.S. PlayStation® Portable owners, for example, playing video or music on the device at least once per week,” said Lewis Ward, research manager, consumer gaming and mobile entertainment, IDC. “Digital content for these platforms is commonly available for download, and it is this evolving delivery mechanism coupled with large file sizes that has transformed memory cards from helpful accessories to something that many teens and young adults use on a regular basis.”