Developers moving across all three of the platforms supported by XNA Game Studio might find themselves working with their storage code to create a single codebase that works across all three. One of the main confusions can be the issue of what actually works on each of the platforms. Here’s a small table that quickly sums up what you have on each platform:
Allow me now to elaborate on the Xbox 360 implementation of isolated storage as that is likely the most interesting part of this post. A few high level points can be made to give some details about how isolated storage works on Xbox 360:
So as the title says, “what storage is right for me?”
Generally speaking the recommendation for games on Xbox 360 is to use the StorageDevice/StorageContainer APIs. These are what professional titles for XBLA and retail will use (or the native equivalents) and will therefore make your game feel more at home in the ecosystem. Isolated storage is there if it fits your needs and your desired experience, but be mindful of the limitations that come with that API as you work on your game.