I’m not saying you have to get rid of your Xbox One by any means, but there is a chance that for whatever the reason at one point you’d want to sell it or give it away. If this is absolutely something you have or want to do, Xbox One provides an easy way to erase everything in the console and restore your Xbox to the original factory defaults.
Basically resetting Xbox One to factory defaults means that everything will go back to the day you bought it and before you turned it on for the first time. All settings including accounts, apps, games, and saved games will be gone. Of course that everything in your account synced to Xbox Live will be kept intact.
In this guide, you’ll learn the steps to reset your Xbox One X, Xbox One S, or original Xbox One to it’s default settings:
Press the Xbox logo button to open the Guide.
Select the gear button on the far-right.
Click on Settings.
Click on System.
Select Console info.
Click the Reset console option.
Select the reset option that best suites you, including:
Once you’ve completed the steps, confirm your option as necessary and the system will reset to the factory default configuration. If you are having issues with the TV signal, display, or any other problem you may encounter with Xbox One and if everything else you tried didn’t work, restoring to defaults may just solve the issue.
Update November 24, 2017: This guide has been updated to reset the console with the interface changes available with the Xbox One Fall Update.