I also have 5.1 surround sound with optical. I have my 360 and Wii connected to my TV (the new consoles will connect the same way). The TV feeds into the surround sound with optical. It's the only way to get surround sound out of every device connected to the TV.
I didn't even know sound lag was a thing. I've never heard of it happening.
You're lucky that your TV even passes a surround signal through the optical out. Most TVs only pass stereo.
@syed117: When you consider that you have to chose between increased input lag or stereo sound it is certainly pretty stupid.
Can you explain this decoder? How much does one cost?
The Sony surround system I use introduces virtually no lag. It's the only reason I use it. It's a very basic receiver and 5.1 system.
The 360 has optical output that is always sending out a 5.1 signal. There is no option or setting. If you plug an optical into the back, you will get a dolby 5.1 signal out. That cable goes into the decoder and it's turned into the surround signal that you get with almost all surround headphones. Astros, Turtle Beaches, and most Trittons work this way.
The optical out at the back of the PS3 works the same way, but you need to change the settings to send out that signal.
The Ear Force DSS is the older turtle beach model. It's also the better version. The new one isn't as good, but I'm not sure if it supports DTS.
The creative is very old. I've had it for 6 or 7 years, but stopped using it after I got the Ear Force.
The turtle beach decoder by itself was $60 or $70. Astro Mixamps are more expensive.
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