As game sizes continue to grow, this update is likely to be welcomed by users struggling to maintain large game libraries, especially with titles like Halo: Master Chief Collection nearing 140GB.

Microsoft has announced that Xbox consoles will now support external hard drives larger than 16TB, a significant upgrade from the previous limitation of 16GB.

This new support is currently being tested by Xbox Insiders in the Alpha Skip-Ahead tier and will be rolled out to larger testing groups before a public release.

The update addresses the increasing need for larger storage due to the high install sizes of newer games, including Indiana Jones and the Great Circle and Call of Duty: Black Ops 6.

The system update, which includes this new feature, is mandatory and will be available from 6:00 p.m. PT on January 21, 2025, and must be completed by 3:00 a.m. PT on January 22, 2025.

Starting January 22, 2025, Xbox users will also be able to connect to Discord voice chats through their consoles, enhancing multiplayer gaming experiences.

In addition to storage updates, Xbox will host its first Developer Direct livestream of 2025 on January 23, featuring new games like South of Midnight and Doom: The Dark Ages.

Microsoft has also launched a 'Designed for Xbox Monitor' campaign to identify monitors that provide PC-level performance for console gaming, with new models expected this summer.

Drives exceeding 16TB will be formatted into multiple partitions, allowing users to utilize all available space while appearing as separate devices in the storage list.

Players with existing drives over 16TB will need to reformat them to take advantage of this new support, which will erase existing data unless backed up.

Microsoft has not specified an upper limit for external storage devices, suggesting that users may connect significantly larger drives, such as a 24TB Seagate external hard drive.

Furthermore, the Xbox Design Lab has relaunched, allowing for customization of Xbox Series X/S controllers, expanding on the program that began with Xbox One controllers in 2017.