How to Factory Reset Xbox Series S Without Losing Your Games

So, your Xbox Series S is acting up. Maybe it’s a weird UI glitch that won’t go away, or perhaps you’re finally upgrading to a Series X and need to wipe your data before selling the little white box on eBay. Whatever the reason, you're here because you need to know how to factory reset Xbox Series S without turning it into a paperweight or accidentally deleting five hundred gigabytes of Call of Duty updates.

It happens. Consoles are basically just compact computers, and computers get "tired." They get cluttered. Files get corrupted after a bad power outage or a botched system update. Honestly, a fresh start is often the best medicine for a laggy dashboard.

When You Should Actually Pull the Trigger

Before you go nuking everything, ask yourself why you're doing this. If the console is just running a bit slow, a hard power cycle—holding the power button for ten seconds—usually fixes it. But if you’re seeing the dreaded "System Error" screens or if your local profile refuses to sync with the cloud, a reset is your next move.

Microsoft actually provides two distinct paths here. One is a total wipe. The other is a "soft" reset. If you’re keeping the console, choose the soft reset. It keeps your games installed but refreshes the operating system. It’s a lifesaver for people with slow internet who don't want to spend three days re-downloading Forza Horizon 5.

The "Keep Games & Apps" Option

This is the one most people actually want. You go into Settings, then System, then Console Info. When you select Reset Console, a prompt pops up. Pick Reset and keep my games & apps.

What actually happens? The Xbox deletes your accounts, resets the firmware settings, and clears out the cache. Your 400GB of installed games remain untouched on the SSD. Once the console reboots, you just sign back into your Microsoft account, and everything is right where you left it. It’s the closest thing to a "refresh" button that exists in the gaming world.

The Nuclear Option: Resetting for Resale

Now, if you are selling the console or giving it to a friend, you have to go all the way. You don’t want some random person in another state having access to your credit card info or your Halo stats.

For this, you’ll select Reset and remove everything. This is the "factory" part of factory reset Xbox Series S. It wipes the internal SSD clean. Every save file (don't worry, they’re in the cloud), every game, and every screenshot is gone.

What if the Screen is Black?

This is where things get tricky. If your Xbox won't even boot to the dashboard, you can't exactly get to the Settings menu. You're stuck. Or are you?

Microsoft built a "Troubleshoot" menu into the hardware itself. You have to use the physical buttons on the front of the console.

🔗 Read more: Galaxy Black Xbox Series X: What Most People Get Wrong

1. Unplug the power cord for 30 seconds.
2. Plug it back in.
3. Press and hold the Pair button (the small circular one near the USB port) and the Eject button (Wait, the Series S doesn't have an eject button, so you just hold the Pair button).
4. While holding Pair, tap the Xbox button on the console.
5. Keep holding Pair until you hear two "power-up" tones.

A grayscaled menu will appear on your TV. This is the Xbox Startup Troubleshooter. From here, you can select Reset this Xbox using your controller. Even if the software is totally borked, this hardware-level command usually works.

Why Your Games Are Safer Than You Think

One huge misconception is that resetting your console deletes your progress. It doesn’t. Since the Xbox One era, Microsoft has been aggressive about cloud saves. As long as you were connected to Xbox Live at some point, your Starfield save or your Elden Ring progress is sitting on a server in a data center somewhere.

The moment you sign back in after the reset, the console syncs. It’s seamless. You'll see a "Syncing data for..." progress bar the first time you launch a game. Let it finish. Do not cancel it. If you cancel it, you might actually lose data.

Common Myths About Resetting

People think a factory reset fixes hardware issues. It won't. If your Xbox Series S is making a loud grinding noise or if the fan sounds like a jet engine, a software reset isn't going to fix a physical bearing or a dust-clogged heatsink.

Similarly, if you're banned from Xbox Live, resetting the console won't unban you. Bans are tied to your account and your console's unique hardware ID (the MAC address or serial number), not the local software state.

Network Settings and Resetting

Sometimes, people reset their whole console just because the Wi-Fi is acting weird. Don't do that. It's overkill. Instead, go to Network Settings and select Forget Wireless Network, or try the Advanced Settings to clear your Alternate MAC Address. This forces a network reboot without deleting your user profile.

Troubleshooting the Reset Process

What if the reset fails? It’s rare, but it happens. Usually, it's a sign that the internal NVMe SSD is failing. If you get an error code like E101 or E102 during the reset, you might need to perform an Offline System Update (OSU1).

This requires a USB flash drive formatted to NTFS with at least 6GB of space. You download the update files from the official Xbox Support site on a PC, plug the drive into your Series S, and boot into the Troubleshooter menu mentioned earlier. It’s a bit of a hassle, but it’s the final "Hail Mary" before you have to send it to Microsoft for repair.

Actionable Next Steps

If you are currently staring at a frozen screen or preparing to sell your console, follow this sequence:

1. Back up your captures: If you have screenshots or clips saved locally (not on the Xbox network), upload them to OneDrive or a mobile device via the Xbox app before doing anything.
2. Sync your saves: Boot up your most important games while connected to the internet one last time to ensure the "Cloud Save" icon triggers.
3. Try the Soft Reset first: Navigate to Settings > System > Console Info > Reset Console > Reset and keep my games & apps. This solves 90% of software glitches.
4. Remove the account association: If you are selling the unit, go to your Microsoft account online and remove the Xbox Series S from your "Devices" list after the "Remove Everything" reset is complete. This ensures the new owner can set it as their Home Xbox without issues.
5. Check for hardware heat: If the reset doesn't stop the crashing, ensure your Series S has at least 4-6 inches of clearance on all sides. These consoles vent a massive amount of heat through that black circular grate, and overheating often mimics software corruption.
6. Update your controllers: After a factory reset, your controllers may need a firmware update. Plug them in via USB and go to the Accessories app to ensure the connection is stable.