A factory reset restores your Nex Playground to its original manufacturer settings, i.e. "out-of-the-box" state, by erasing all your account information, game progress, system updates, and custom configurations.
To do this, go to the top menu of home screen: System > Troubleshooting > Factory Reset.
Performing a factory reset is recommended before selling, donating, returning or recycling your Nex Playground.