Reset the password for a Microsoft account for use on an Xbox 360 console by visiting the password reset page of Xbox.com and following the onscreen instructions to locate the account email address. After finding the address, enter it into the password reset page to create a new password.
The first step to resetting the password of the Microsoft account logged into your Xbox 360 is locate the email address associated with the account. If you don't know the address, turn on the Xbox and sign in to the profile that has the Microsoft account and wait for the email address to appear in the upper right corner. If it does not appear, visit the Settings menu, then choose the Account option and select Account Security from the Your Information tab. After obtaining your email address, visit the Support section of Xbox.com and load the password reset page.
As of 2015, the only way to reset the password on a Microsoft account is through the Microsoft website or through an Xbox One, not with an Xbox 360. To reset the password online, enter your email address and then verify it through the associated phone number. This sends an email to the address with a link to reset the password.