Latest Xbox 360 system update is live, now supports 2TB hard drives

Xbox 360 now supports 2TB hard drives via the latest system update for the console.

Support for the drives was announced earlier this month and has been available for preview members.

“In addition we will also no longer reserve space in advance on your hard drive,” said the firm. “If you are using 16GB of hard drive space for games – we will only take 16GB of space. And just like today – you will be able to use two external drives at a time.”

Here's some of the other features included with the update per Major Nelson:

• Larger external USB hard drives – Plug in any external USB hard drive up to 2 TB to store your Xbox 360 downloads, profile, saved games, and other data.
• Purchase history – To view your recent purchases, go to Settings > Account >Purchase History.
• Password reset - You can now reset your password by selecting Forgot your password? at sign-in.
• Network statistics - View download speed, upload speed, and signal strength, go to Settings> System > Network Settings. Select your network, and then choose Network Statistics.
• See your money - Your Microsoft account balance now appears in the top-right corner of the Xbox Dashboard. To turn it off, go to Settings > Profile > Account Security.