Xbox One System Update with a USB Memory Stick

This is the official Microsoft guide for performing a System Update on an Xbox One via a USB memory stick:

First, you'll need to find out which operating system number your Xbox One is currently running.

1. Press the Xbox button to return to Home.
2. Press the Menu button and select Settings (or select Settings on the Home screen).
3. Select System.
4. Select Console info.
5. Your OS version is the third row down, listed as Build number.

Next, you'll need to ready your USB drive on your computer.

1. Plug your USB flash drive into a USB port on your computer.
2. Format the USB as NTFS (USB must have at least 2 GB of space).
3. You'll need to select the correct OS version from Microsoft's FAQ page to be able to install it properly.
4. Click Save to save the console update .zip file to your computer.
5. Unzip the file. If you're using Windows XP, Windows Vista, or Windows 7, double-click the .zip file to unzip it.
6. Copy the contents of the .zip file to the root directory of your flash drive.
7. Unplug the USB flash drive from your computer.

Lastly, transferring the update to your Xbox One.

1. Unplug the network cable if you're using a wired network connection.
2. Power off your console, and then unplug the power cord to ensure that the console is completely powered off.
3. Wait 30 seconds.
4. Plug the power cord back in.
5. Plug the flash drive into a USB port on your Xbox One console.
6. Press and hold the BIND and EJECT buttons, and then press Power On.
7. Continue holding the BIND and EJECT buttons for 10-15 seconds.
8. Listen for two "power-up" tones a couple of seconds apart.

If you don't hear the two power-up tones after 10 seconds, then the update has failed. If you do, the update has been successful, and the Xbox One will now restart (which may take several minutes, Microsoft warns).