Uses USB 3.0 with storage of 128 GB.
If it works with standard USB 3.0 drives … that’s excellent new. I hate proprietary storage tech!
Taken from TPU … Microsoft is introducing some new requirements for external storage devices on the Xbox Series X/S. The new consoles feature high-speed PCIe 4.0 SSD storage which should greatly reduce loading times, with 802 GB of usable space on the Xbox Series X for games and apps. This internal SSD will allow gamers to install a handful of AAA games, for those looking to expand the storage on the new console have two options the proprietary high-speed connector or a USB based storage device.
The high-speed connector will allow for plug and play storage upgrades with high speed NVMe SSDs from Seagate however, these expansion modules will come in at a high price. For those looking to save some money, Microsoft has recently confirmed the minimum requirements for using an external storage device for game and app installations, which are USB 3.0 only and a minimum of 128 GB. This will rule out older HDDs and lower capacity USB sticks but will helpfully allow for a higher quality experience.