Microsoft testing Xbox 360 update that adds 2TB USB support

UPDATE 1/5/15 9.15am Microsoft is rolling out a new Xbox 360 firmware update that adds USB hard drive support up to 2TB.

The feature, previously available to preview program members, is joined by a couple of other new features.

Purchase history and password resetting are now more straightforward and there's a new network statistics screen to better see what your console is up to online.

Finally, your Microsoft account balance will now appear on-screen in the top-right corner of the Xbox Dashboard (this can also be disabled).

ORIGINAL STORY 9/4/15 4.50am Microsoft has detailed a new Xbox 360 system update that boosts the console's external USB drive support up to 2TB.

The previous memory cap was a paltry 32GB - even if you plugged in larger-sized devices.

Microsoft's firmware refresh rolls out soon to those signed up for the Xbox 360 dashboard beta programme. A full public launch will then follow soon after.

The update also removes the Xbox 360's previous method of reserving hard drive space in advance, to maximise the amount of free room on your drive.

Increased hard drive support has been one of the most-requested features for Xbox 360 on the official Xbox Feedback website.

While monthly Xbox One updates continue, this is the first major addition to the Xbox 360 in some time. The creation of a dashboard beta programme similar to Xbox One suggests that Microsoft has more updates planned.