Microsoft documents two ways to factory reset an Xbox One: from the console’s own settings, or from a USB flash drive when you can’t reach those settings. Both wipe the console back to its default state, so the order matters — and so does knowing exactly what each option deletes before you pick one.
Xbox Support says a reset is for two situations: troubleshooting the operating system, or preparing to sell or trade the console.
Quick answer
- If the console starts normally: reset from the console settings, under Console info.
- If you can’t reach the settings: use Microsoft’s USB flash drive method instead.
- If it never reaches the Home screen: open the Xbox Startup Troubleshooter with the Pair and Eject buttons, and choose the reset that keeps your games first.
- Before any of it: connect to the Xbox network so your saves sync, because a reset erases everything not uploaded.
What a Factory Reset Actually Deletes
This is the part worth reading twice. Microsoft’s warning is blunt: resetting your console to its factory defaults erases all accounts, saved games, settings, and home Xbox associations. Anything not uploaded to the Xbox network will be lost.
That last sentence is the one that catches people out. Xbox Support’s advice is to get the console online first: your console syncs when it’s connected to the Xbox network, but if you’ve been offline for a while, connect to the network before taking these steps. If your console has been sitting unplugged in a cupboard for a year, connect it and let it sync before you reset anything.
Method 1: Reset From the Console Settings
This is the route to use when the console still boots and you can reach the dashboard.
- Press the Xbox button on the controller to open the guide.
- Go to Profile & system > Settings > System > Console info.
- Select Reset console.
The console then offers three choices. Reset and remove everything is the true factory reset — it deletes user data and installed content, and it’s the one to use when you’re selling or giving the console away. Reset and keep my games & apps resets the operating system but leaves your installed games and apps in place, which makes it the one to try first when you’re fixing a problem rather than wiping the console. Cancel backs out without changing anything.
Start with the option that keeps your games. If the problem turns out to be a corrupted game file rather than the system software, you can still fall back to removing everything afterwards — but you can’t un-delete a library you wiped on the first attempt.
Method 2: Reset From a USB Flash Drive
If you can’t get into the settings at all, Microsoft’s second documented method is reset using a USB flash drive. You’ll need a Windows PC with an internet connection and a flash drive formatted as NTFS with no other files on it. Microsoft’s page hosts the reset file itself and lists the exact drive requirement, so get both from there rather than from a third party.
The shape of the process is:
- Format the flash drive as NTFS on your PC, then download Microsoft’s reset file and copy its
$SystemUpdatefolder to the root of the drive. - Power the console off and unplug the power cord so it’s completely off. Disconnect the ethernet cable if you use a wired connection.
- Plug the power cord back in, then plug the flash drive into a USB port on the console.
- Hold the Pair and Eject buttons, then press the Xbox button on the console. On an all-digital console there is no Eject button, so hold only Pair.
- Listen for two power-up tones. The console then restarts into the setup experience, and you can remove the drive.
Two tones matter here: the first means the console found the file, the second means it copied it. Power-down chirps instead mean the step failed and you should try again.
If Your Xbox Won’t Reach the Home Screen
A console that hangs before the dashboard can still be reset, using the Xbox Startup Troubleshooter. Microsoft support staff set out this order on Microsoft Q&A in September 2026.
- Hold the Xbox power button for about 10 seconds until it shuts down.
- Unplug the power cable for 30 seconds, reconnect it, and turn the console back on.
- If it still hangs, turn the console off, then hold the Pair and Eject buttons while pressing the Xbox power button. Keep holding until you hear the second startup tone. On an all-digital model, hold only Pair.
- In the troubleshooter, select Reset this Xbox, then choose Keep games and apps — that reinstalls the operating system without removing installed games.
Xbox Support’s own startup-error guide follows the same escalation, with Restore your console to factory defaults as a later step and an offline factory reset after that. So a full wipe is the last thing to try, not the first.
And if none of it works, Microsoft’s answer is direct: if the troubleshooter does not appear, or the reset and offline update fail, the internal hard drive may be failing. On a console that old, repair or replacement is the realistic option. A green screen that never reaches Home is the same story — the Xbox is stuck while loading its system software, and on an older console corrupted system files or a failing drive may be the cause.
Frequently Asked Questions
Will a factory reset delete my games?
It depends which option you pick. The reset that keeps games and apps reinstalls the operating system without removing installed games. Removing everything deletes user data and installed content, which is what you want only when selling the console.
Do I need to be online before resetting?
Yes, ideally. Your console syncs saves when it’s connected to the Xbox network, and anything not uploaded is lost in a reset. If it’s been offline a while, connect it first and let it sync.
Does resetting fix a console that won’t start?
Sometimes. It’s worth trying through the Startup Troubleshooter, but if the troubleshooter won’t appear and an offline update also fails, Microsoft points at a failing internal hard drive rather than the software.
Details are accurate as of 16 September 2026. Other Xbox problems? See our fixes for an Xbox One stuck on a green screen, our checklist for an Xbox One that won’t turn on, the gentler step of clearing the cache on an Xbox One, or browse more console guides.
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