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Xbox Support
https://support.xbox.com/en-US/help/hardware-network/display-sound/choosing-speaker-audio-output#:~:text=Select%20Profile%20%26%20system%20%3E%20Settings%20%3E%20General,5.1%20or%207.1%20uncompressed%20signals%20or%20bitstream%20formats.
Best audio setting for 360? - Microsoft Community
https://answers.microsoft.com/en-us/xbox/forum/all/best-audio-setting-for-360/5f538577-384c-4357-970b-4e1ee41125c1
The digital output setting only selects whether you will get 5.1 Dolby Digital sound or 2.0 sound over the digital outputs (optical output and HDMI). If your headset has an amplifier which supports Dolby Digital and your Xbox 360 is connected to it from its optical output, I recommend setting the Xbox 360 to Dolby Digital.
Xbox Support
https://support.xbox.com/en-US/help/hardware-network/display-sound/choosing-speaker-audio-output
Select Profile & system > Settings > General > Volume & audio output. Under Speaker audio, you can adjust the following settings: HDMI audio - Keep this set at Stereo uncompressed unless your HDMI cable is plugged into a receiver that can process 5.1 or 7.1 uncompressed signals or bitstream formats. If your receiver works with these formats ...
Xbox 360 HDMI - Connecting Headsets for Game Audio ...
https://support.turtlebeach.com/hc/en-us/articles/223083827-Xbox-360-HDMI-Connecting-Headsets-for-Game-Audio
The Ear Force Xbox 360 Audio Adapter Cable connects to the A/V port on the back of an Xbox 360, and provides red and white (stereo) outputs, as well as a digital optical (S/PDIF) output. The adapter is necessary because the Xbox 360 does not allow both the HDMI and A/V cables to be plugged in at the same time.
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