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It's more of a replacement for the official Xbox 360 memory cards and how you have to pay like $50 for 512 megs when the cheaper memory card mentioned in the OP costs $40 for four times the space and that's not even counting how it's expandable by MicroSD.

So for Arcade/Core Xbox 360 owners and those who want to take game saves and XBLA games (and whatever else you can store on them) on the go, then this seems like a better alternative than the official memory cards.