Option to Defrag external HDD on Xbox ?

All good mate.. I needed a nap & was a bit straight forward towards you...

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What I was trying to say about the formatting of the HDD etc..

If the Power Supply isn't powering the HDD properly.. The HDD platter will spin slowly & the consoles FATX will be fragmented out of place/sync & formatting is the only option to defragmenting the disc platters, as the XBOX dashboard hasn't got a defrag
feature etc..

Defragmenting will prolong the life of the HDD too & keep your XBOX data safe from file corruption + keep system performance optimal..

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Just to note; The Console Power Supply, is the main reason for XBOX/360 RROD issues & the real console failure rate is low, because the console is actually fine... Regularly check the power brick case heat & try to keep it off the floor & away from dust
etc..

any usb 3 hdd will do fine, i don't know why people are so interested in waisting lots of money for an SSD to reduce loading times on a games by 2 - 4 seconds.

Seagate and Western Digital seem to be the ones to go for. Got a 2TB Seagate myself. Wouldn't bother with the Xbox branded HDD, it's no different than any of the others.

Why would an external drive shorten loading times?

I bought a 2TB Western Digital hard drive and it works perfect I would definitely recommend it.