Microsoft has significantly increased the available external storage capacity for the Xbox Series X and Xbox Series S by removing the 16TB limit for external drives. However, this change only applies to external storage and doesn’t impact the ability to run Xbox Series X/S games from these drives.
According to The Verge, a new beta update is being rolled out to Insiders, which allows users to use a single drive larger than 16TB. This is made possible by supporting multiple partitions on the external drive, which the console can read as one unified storage option. To take advantage of this feature, users will need to reformat their external drives. Currently, this beta is available only to members of the Alpha-Skip Ahead program, though it is expected to be available to a broader audience in the near future.
The real question remains: will you ever need that much external storage? For most users, 16TB is already more than enough. With an average Xbox Series X game size of around 50GB, you could fit approximately 320 games on a 16TB drive. However, it's important to note that games cannot be run directly from the external drive. Players will need to transfer games back to the console's internal storage before playing. For those with fast internet connections, it might be just as efficient to redownload games as needed rather than storing them externally.

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