Saving Clips to External/Flash

Hello wonderful community,

Quick question - haven’t been able to find any answers via search/google.

Can you save games/clips to an external hard drive or a USB stick? Or do you need an official Microsoft internal hard-drive to save clips?

Official MS hard drives for s 360S are a price-gouge IMO, has anyone has any luck using generic 360S hard drives or any other alternative for in-game clips?