Updating the Xbox 360 Software
Before you begin a transfer, update your Xbox 360 software if it isn’t current by connecting to the Xbox network over an internet connection.
Transfer Data From an Old Hard Drive to a New Hard Drive
When you have the current version of the software installed, you can transfer the data. The transfer process can take several hours depending on how much data you have. Be patient. After the transfer is finished, sign in to your Xbox account. It must be noted that this is a one-time, one-way process. You can only transfer from a smaller hard drive to a larger hard drive.
Content License
If you transfer the data onto a totally new system, not just a new hard drive, you also need to perform a content license transfer, even if you used a transfer cable, so you’ll be able to play your downloaded games on the new system. If you only swapped hard drives and not entire systems, you don’t need to do this. If you did transfer to a new system, and you do not do this, you will only be able to play your downloaded content while connected to the Xbox network. It won’t work offline. Here’s how to transfer the content licenses: