Think about everything stored on your console. Your credit card number. Your email. Your real name and address. Linked accounts to streaming services or your bank. When you hand that console to a stranger at GameStop or sell it on Facebook Marketplace, all of that can go with it — unless you wipe it first.
The Consumer Financial Protection Bureau flagged that the growth of financial transactions inside gaming platforms has created real risks for players’ personal data and assets. Modern consoles aren’t just gaming machines — they’re basically mini financial accounts. You buy games, subscribe to services, store payment methods. That data lives on the device.
The fix is simple: factory reset before you let go of it. Every major console has this option in the settings. It wipes your local account data, payment info, and saved session credentials. Do it before the trade-in, not after.
Important: some data tied to your account — like Nintendo Account purchases or PlayStation trophies — lives on the company’s servers, not just the device. A factory reset removes your local access, but those accounts still exist online. That’s why you should also sign out of and delink every connected account before you reset: your Google, your social media, your streaming apps. The New York Division of Consumer Protection specifically warns that linking personal accounts to your gaming system increases how much of your data gets exposed. Removing those connections before a reset is an extra layer of protection that takes thirty seconds.
Basically: treat your console like a phone. You wouldn’t hand your old iPhone to a stranger without wiping it. Same rule applies here.