Reset an Xbox 360 to the original factory settings by formatting the hard drive through the System Settings and restarting the device. Make sure to remove any CDs from the console first, and transfer any information that you want to save to a USB device.Continue Reading
Go to System Settings and select Console Settings from the System Settings menu. Once you are in Console Settings, go to System Info.
Write down the serial number, then press the B button on the controller until you reach the System Settings menu.
Select the Memory option from the System Settings menu. When you see the hard drive information, go to Device Options by pressing the Y button. From the Device Options, select the Format option.
Select Yes on the confirmation box, and input the serial number that you wrote down into the next screen. Select Yes on the next confirmation screen.
Restart the device after formatting is complete to ensure that the original factory settings were restored.