One part of the new upcoming Dashboard update that Microsoft seems to be letting users in on is the fact that it will address the use of unauthorized storage devices on the Xbox 360 platform. According to our sources, users that are using unauthorized Memory Units with their consoles will no longer be able to access them once this update is applied.

What all this exactly means is a bit unclear at this time, but if users happen to own an unauthorized or unapproved storage device that has their profile or saved games stored on it, it will be of little use after this update. From what our sources tell us this is primarily targeted at unauthorized memory cards, but sources suggest that perhaps upgraded or replaced hard drives could also be affected, as well.

The news is especially important for those that have registered to take part in the Dashboard update Preview Program, because if they do not act quickly and move both their profile and games saved to an authorized device before early next week they will lose access to them.

As for what this apparent crackdown is all about, our sources suggest that it is a combination of two things. The first is that Microsoft is always looking to stamp out cheating or the possibility of cheating, and some of these unauthorized storage devices are being used in such a way to cheat. For example, we hear that some of these Memory Unit devices are being used to modify the data in the files on the unit to unlock additional achievements.

The second, of course, is the fact that Microsoft controls the licensing for third party add-on accessories; and without having approval in place the company does not test these devices for compatibility with the Xbox 360 platform. Also, of course there is the fact that Microsoft gets no revenue from devices that claim Xbox 360 compatibility, but are not officially licensed. While this might sound as if the company is trying to stamp out competition by their officially licensed program, the fact of the matter is that the more closed your platform is, the less problems you are likely to have that are caused by third-party accessories that are not approved for use with the console. From our understanding Microsoft is fully within their rights to do this, as the use of unauthorized hardware or accessories, especially those that can be used for cheating, is forbidden according the terms of service.

Our advice is that if you are not using officially licensed and approved storage devices, you should act quickly to make sure that your profile and game saved data is on an officially approved device. Sources are suggesting that by mid-next week those accepted in the preview program will be getting the latest dashboard update, followed by an actual full rollout in early November.