With the forthcoming Xbox 2 release this fall and unveiling at E3 (Well, we think. We thought CES and GDC, too.) we've heard about Xbox 2's add-on HDD. Well, we've heard from a source within MS about X2's hard drive functionality.
In essence, it's a huge memory card. Bring your game saves, DLC, characters, MP3s, and saved replays to your friend's house. Load in your HDD and show your friend your kick ass character, or a PHAT RIDE, YO! Show him the course you made in PGR3, or the gametype you created in PDZ. Transfer saves, items, levels, and more with them (via memory card or Live? This info wasn't clarified). It won't be the supposed iPod killer. More like a portable Xbox Identity. Plug it into any Xbox and it'll know your Live account, stats, preferences, saves, and all of that good stuff. Think of it similar to Pokémon. Lugging around your GBC(olor) with Pokémon Red. Someone has Pokémon Blue, you trade some Pokémon and say good day. You can do this with saves, items, or whatever the developer wants. This should also be a Live feature, the way it was stated to us (Or perhaps just a Xbox Live marketplace feature, with the hard drive enabling it).
It won't be a normal IDE hard drive. One, because if you drop it and dislodge the head (insert penis [hehe] joke here), you wasted the extra cash and your info is gone. Two, because of hackers. It's going to be durable, portable, and sleek. He suggested it'd be "pretty fashionable" if you choose to alter it's exterior looks with stickers or whatever.
It will be pre-loaded with some things, to entice buyers. Obviously, what's pre-loaded was not even hinted at.
E3 starts May 17th. Look for more information in the upcoming month leading up to this year's Conference and Expo.
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