This procedure is not to be taken lightly. You will lose everything. This includes settings, installed or downloaded games and DLC. Eventhough you game saves should generally be safe because they are stored in the "Cloud," if the console did not finish uploading the latest saves before you do a "Factory Reset" you could lose your most recent saves.
Your Xbox Live Profile (GamerTag) will be about the only thing not to worry about losing since it is always in the cloud.
Why do would you want to do this? Well if you decide to sell or trade in your console it wipes all personal information from your One. Also the may an issue with the console the none of the other tricks or troubleshooting will help. THIS IS A LAST RESORT.
Here is how to complete this dirty task:
Note: If you can't perform the following procedure to restore the factory default settings because you have no picture on your screen or you can’t access the Settings menu, you can alternatively perform this action by using a file loaded to a USB flash drive. For access to the file and the instructions, see Offline System Update Diagnostic Tool.
If you are ready to reset your console to the factory default settings, follow these steps:
1. Go to the Home screen.
2. Press the Menu button on the Xbox One Wireless Controller.
3. Select Settings. Select Restore factory defaults.
Read the warning message and select Yes.
Your Xbox One console will now begin the process of erasing all content and resetting itself to the default settings.
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