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Don't forget tax
Our community has rated this post as helpful. If you agree, why not thank Mozei
To clarify on this, you can only put Xbox one and older games off the external drive.
You'll have to get this expansion in order to play Series X|S on it. That doesn't mean you can't put it on other external drives, you'll just have to transfer it over.
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Put the drive in your cart and add the 10% off coupon. Jot down the total plus tax.
Remove it from your cart. Add a gift card for that value. It'll be 10% cheaper than whatever you type in thanks to the discount.
The 10% discount says it doesn't apply to Xbox consoles or accessories but apparently this doesn't count as either ¯\_(ツ)_/¯
Edit: Also, if you have a Discover It card, you should be able to get 5% cashback on Target.com orders currently, so there's another few bucks you can save.
I haven't done any research into this at all (I've turned on my XB1 a total of probably 10 times... not much of a gamer anymore) but I have a feeling that the USB 3.2 interface will let you take full advantage of the PCIe 4.0 bus, and once externals of adequate speed become cheaper, that'll be the preferred method of increasing storage. Also I expect future versions of have more storage, Wifi-6/6e, and maybe 2.5gbe or 10gbe wired network support as those continue to become more mainstream.
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I actually filled my new Xbox after the first day. With Gamepass, you end up installing so many more games.