How To Factory Reset Xbox [Xbox One, X & S]

You can access both reset options through either through the settings or the startup troubleshooter, here's how!

If you’re ever struggling with an issue that won’t go away even after trying out every fix you’ve been recommended, it’s now time to factory reset Xbox.

The feature resets the Xbox’s System to its default factory state and, in doing so, removes any corrupted files that may have been created from using it. The feature may only remove software errors, but it’s important to know.


Key Takeaways

  • Factory resetting is a feature that returns your console to its default factory state.
  • This fixes all software-related errors caused by corrupted or repeated data.
  • Its drawbacks include the fact that it deletes all your data, and if the issue turns out to be in the hardware, you’d have lost it for nothing.

What Does It Mean To Factory Reset Xbox?

Factory resetting is an Xbox feature that clears all data from within your console, clearing all errors and system-based corruptions. It’s what you do when nothing else works, or you plan on selling the console. It doesn’t account for hardware errors, so a failure to fix an error might mean something wrong with your physical console.

Why To Factory Reset Xbox?

While it’s a last resort in most cases, the factory reset feature brings many benefits. Since it sets your console back to its default state, it erases any errors that may occur due to corrupted data files you might have downloaded accidentally. It also fixes any issues with performance and bootup times you may have as long as physical hardware issues do not cause them.

When To Factory Reset Xbox?

Factory resetting your console isn’t something you do routinely. Unless you need to do it, you should leave this option alone. Even the “Keep my games and apps” option can cause problems with your data. If other methods exist to fix whatever error you want, I’d recommend going through all of them before concluding resetting it.

I advise you only perform a factory reset if:

  • There’s an error that isn’t going away no matter what method you try.
  • You’re planning on selling or giving away your Xbox console.
  • You need a quick fix; your data is backed up on cloud storage or an external drive.
  • You think a virus might be inside a file you cannot delete.
  • You don’t have much stuff downloaded and want any error fixed quickly.

How To Factory Reset Xbox?

There are two main ways that I will discuss resetting your console here: doing it from the settings and doing it from the “Startup troubleshooter” screen.  There’s no one way better than the other, but the circumstances where you should do each differ.

Suppose you have a strong internet connection, and there aren’t any errors interfering with your server connectivity or anything stopping you from accessing the settings. In that case, the first method is usually better. It’s quicker and easier to do.

However, if you cannot access the proper internet or your settings, opting to perform an offline reset through the “Startup troubleshooter” screen works best, even though there’s a bit more you have to do for it.

Reset And Keep Games

The reset and keep my apps and games option allows you to get all the benefits of a factory reset without struggling to add in each game, app, and account from scratch. The option is barely any different from a pure factory reset, and despite the name, it can still accidentally erase some of your data. Make sure you have your data backed up before you attempt it.

From The Settings

To proceed, follow these steps:

  1. Back up any essential data to prevent any important data from being lost.
    Settings
    Settings (Image by Emopulse)
  2. Open the “Guide menu” by pressing the “Xbox button” on your controller.
  3. Cycle through the tabs using the right bumper and go to “Settings.”Console info inside SystemConsole info inside System (Image by Emopulse)
  4. From the “Settings” menu, select System.
  5. Then, proceed to “Console info.”Reset option inside console infoReset option inside console info (Image by Emopulse)
  6. Locate and choose “Reset Console.”Reset and keep my games and appsReset and keep my games and apps (Image by Emopulse)
  7. Select “Reset and Keep My Games and Apps.”
  8. This will initiate the Factory reset process.

From The Startup Troubleshooter

Alternatively, you can do this through the Startup Troubleshooter as well. Follow these steps:

  1. Turn off your console.
  2. Unplug Xbox from the power supply.
  3. Wait for around a minute.
  4. Plug the console back in.

    Bind + Eject

      Bind + Eject (Image by Emopulse)
  5. Simultaneously hold the Bind and Eject buttons on your console (The “Bind” button is on the left side for the original Xbox One console. For Xbox One S, it is below the “Power” button.)
  6. Hold your controller’s “Xbox button” until you hear two beeps.
  7. This boots up the “Startup Troubleshooter” screen.

    xbox system error e203

      Troubleshoot – Image Credits [Emopulse]
  8. On the lower left side, select “Reset this Xbox.”
    Keep everything and reset Xbox
    Keep games and apps and Reset Xbox – Image Credits [Emopulse]
  9. Then, choose “Keep games and apps.”
  10. This will begin the reset process.

Reset And Delete Everything

If resetting while keeping your games and apps doesn’t solve the issue, don’t immediately assume the problem is with the hardware. There’s still a chance that the corrupted file belongs to another game file, keeping the games’ data protected. If that’s the case, you can have one last try at fixing your console by completely wiping all data inside.

This will delete all data, including games, accounts, captures, and system files. Because of this, do not attempt this if you’ll have trouble getting it back.

From The Startup Troubleshooter

You can do this from the “Startup troubleshooter” screen.

  1. First, format a USB drive as an NTF and install this file on your computer.
  2. Copy the OSU file to USB’s root directory as “$SystemUpdate.”
  3. Transfer the file onto your formatted USB.
  4. Now, plug the USB into your console.
  5. Turn off your console.
  6. Unplug Xbox from the power supply.
  7. Wait for around a minute.
  8. Plug the console back in.

    Bind + Eject

      Bind + Eject (Image by Emopulse)
  9. Simultaneously hold the Bind and Eject buttons on your console (The “Bind” button is on the left side for the original Xbox One console. For Xbox One S, it is below the “Power” button.)
  10. Hold your controller’s “Xbox button” until you hear two beeps.
  11. This boots up the “Startup Troubleshooter” screen.

    xbox system error e203

      Troubleshoot – Image Credits [Emopulse]
  12. On the lower left side, select “Reset this Xbox.”
    Remove everything
    Remove everything (Image by Emopulse)
  13. Then, choose “Remove everything”.
  14. After that, confirm the OS installation.

From The Settings

If your settings still work, you can also attempt this from within the system settings.

  1. Back up any essential data to prevent any important data from being lost.SettingsSettings (Image by Emopulse)
  2. Open the “Guide menu” by pressing the “Xbox button” on your controller.
  3. Cycle through the tabs using the right bumper and go to “Settings.”Console info inside SystemConsole info inside System (Image by Emopulse)
  4. From the “Settings” menu, select “System.”
  5. Then, proceed to “Console info.”Reset option inside console infoReset option inside console info (Image by Emopulse)
  6. Locate and choose “Reset Console.”Reset and remove everythingReset and remove everything (Image by Emopulse)
  7. Choose “Reset and remove everything.”

Always exercise caution when performing a Factory reset, as it may lead to losing valuable data and settings on your Xbox console. I strongly advise prioritizing data backup before proceeding with the reset.

Benefits Of Resetting

Resetting your console has a list of benefits in what it does for the Xbox’s help. Here are just a few of the advantages it has:

  • Treats persistent errors.
  • Clears corrupted and repeated files.
  • Clears cache (including invisible cache)
  • Sets your console as good as new.
  • Improves game performance.
  • Removes input delay.
  • Improves bootup times.
  • Faster UI functioning.

Drawbacks Of Resetting

Despite all the advantages, returning the System to its factory settings has drawbacks, mainly in data loss. The list of drawbacks includes:

  • You have to download all games back again.
  • You have to set up your preferred settings again from scratch.
  • You have to add each user profile back manually.
  • You have to put in all the data back.
  • You lose any captures that you did not back up.
  • Any game data that you forgot to back up is lost forever.

Final Words

Resetting your console has drawbacks but prevents any errors plaguing the System. It makes it work faster, treats specific errors, deletes corrupted and repeated files, clears cache, clears apps taking invisible storage, and makes your console good as new.

Despite these advantages, do not forget to back your data up before you attempt either way of going about this.

If this helped, also take a lot at our guides on fixing Xbox errors, such as:

Frequently Asked Questions

Does factory resetting Xbox remove game data?

As long as the data is backed up, it won't remove the game's data. It will delete the game if you choose "Reset and delete everything" however.

I factory reset my Xbox but the error is still there.

If that's the case, either there's a hardware problem with the console or you tried "Reset and keep my games and apps" and the error was in a game or app's files.

Do I factory reset my Xbox before selling it?

Yes, factory resetting the console makes it so none of your personal data is left inside of it, and it makes the Xbox as good as new for anyone buying it.

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