Last week, Major Nelson made an announcement on his blog that this week's LIVE update would lock out "unauthorized" memory units, so Xbox 360 owners who are storing files on third-party storage devices should back it up on an authorized one or risk losing it all. 

Many gamers who purchased these units are understandably worried that their storage devices will no longer work, and the name Datel comes up numerous times in the complaints.

Datel, so you know, is one of the biggest third-party manufacturers of game peripherals and sells MAX memory units compatible with Xbox 360 consoles.  As such, the firm has expressed worry over Microsoft's actions; a representative relayed Datel's concern, noting that this whole situation stunk for business and the consumers:

We are following this issue and awaiting the outcome like everyone else.  If the Major Nelson blog is to be taken at face value then we're disappointed to see that Microsoft are taking these steps to prevent customers from exercising their freedom of choice.

Everyone is looking for ways to make their cash go further at the moment and we believe that Max Memory offers a good value, high capacity, alternative to the official Memory Unit.

Comments under Major Nelson's blog post include accusations of exploiting consumers by cutting out the competition.  Hey, it's no secret that those Microsoft-direct units cost as much as a human organ.