I am having problems with my Xbox 360 4 GB I just bought in December 2014. Just this week, the start up screen and avatars are not displaying correctly. The best way to describe it is the images appear as rectangular or square shapes instead of the 3D shapes they are supposed to look like. The only game that seems to work is Minecraft because of the graphics in that game. All other games are displaying the main pages, but the characters are not showing or the actual game. The volume works fine for everything so the games are working. The dashboard displays properly except for the avatar on the Social Page. Even the videos are showing properly on the Main Dashboard page. Any ideas?
Can (should) I do a factory reset? The system is used mostly by my kids and there are not too many saved game data. I transferred all the data to a USB drive today.