Datel has announced XSATA, a new plug ‘n’ play peripheral that sits between your Xbox 360 and the hard drive.

Using your Xbox 360 file manager software such as the free PC app Xplorer360, you can transfer materials from your console's hard drive to your PC, using your computer's hard disc space to store demos, game saves and other such materials you're not currently using. When you need them again, just transfer back to the XB360's drive. Once the data is on your PC, you can email anything that's not locked to your machine or LIVE account to your friends for them to use on their own consoles too.

via