I bought the xbox360 arcade edition pre owned from gamestop because of its rebate offer, and I want to update xbox live into it but apparently it only comes with 256 MB of memory built it, and the update is 176 MB so obviously it isn't going to work. I got my own personal USB (64 gb) and i formatted it to exFAT so it would work with the xbox. It did so I got halo and farcry 4 onto the USB and it worked. When i tried to update to the latest xbox 360 live, it isn't working. Will I need to get those external hard drives that clip onto the top? I'm fine having to do that but I want to know if there is any other solution. I was thinking of getting a 60 GB model because I don't really play xbox 360 since I am a PC gamer itself, but i really wanted to play Forza Horizon 2 and yeah. Thanks!