We just got an Xbox One so we can start reviewing well Xbox Titles and when unpacking it I encountered the error code E204 10010B04 80070002 it took me roughly eleven hours to figure out a fix for it and I hope it is useful to you as it was for me to come up with.

The first step is to format a flash drive that is 4GB or higher to NTFS and from there you want to go to the Xbox Support site and download the Factory reset. Name a folder $SystemUpdate and put it into the Flash Drive then from there take the updater.xvd file from the Xbox Support site and put it into the $SystemUpdate that is in your flash drive.

Next power down your Xbox One system and plug in your flash drive onto the port on its side. You can power cycle the system first if you want to I did not need to do that part.
Hold both the Eject button and the Bind button simultaneously and then power on the system. Wait until you hear the power on tone twice from the Xbox One and then you should see it installing updates from the flash drive.

Once the system has been reset follow the prompts on the Xbox One and make sure your Ethernet cable is not plugged in. When you get to the prompt where it asks you to update do not update and power your system off from the list of options available to you.

Wait until the system is fully shut down and from there extract the Flash Drive and plug it back into your Windows computer. Now from the Xbox Support website download OSUDT2
and take all the files from the zip folder it provides you and put it into your flash drive overwriting the previous $SystemUpdate with the $SystemUpdate from OSUDT2.

Now plug your flash drive back into the Xbox One and repeat pressing the Bind and Eject buttons one more time until you hear the power one tone twice again and you see your Xbox One installing updates. The Xbox One will restart a few times during the process and from there it should boot to the main menu once it is completed. Where you can log in to your Xbox account.

Note: If you got an older Xbox One you may need to install OSUDT1 first following these steps closely. With newer Xbox Ones with Gears of War and such it is safe to say you will only need OSUDT2.

I apologize also for my atrocious grammar, our editor isn’t around at the moment and I wanted to get this fix out as soon as I could for those having this issue. If this fix for the Xbox One error code E204 10010B04 80070002 does not work for you I recommend contacting Xbox Support.

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