I recently came back to ESO XB1 last week. Everything was fine when playing by myself, no headset issues.
Free weekend rolled in, got our friends to try it out, and turned my wifes account back on.
We instantly started having chat audio issues. I (and only I) would start hearing digital stuttering and sticking in chat audio (old farts like me, think of Max Headroom...) Then eventually would not be able to hear other party members.
To clarify, by party members I mean XBox Live Party chat. I tested and made sure everyone in the game group, and XBL party, left any other in-game chat channels.
If I opened the XBL party slide, I could see friends icons glow as they were taking, and they could hear me when I spoke, and my icon glowed as well. However nothing I did resulted in me hearing them.
I hard reset, and that worked briefly, then issue returned in minutes.
<insert lots of testing and cursing here>
I tried turning off kinect (I am only party member with one)
I plugged in my headset to PC and confirmed no firmware update available.
Loaded other games, with same group. NO ISSUES. (GTA online, 7 Days to Die, Neverwinter, BF1, COD, on and on we tried)
I sat in party for over 2 hours without ESO loaded, no issues. Literally 2 minutes into loading ESO at character creation, BOOM, issue is back.
I read several threads here about plugging in the headset, or other interesting ideas. Nothing worked.
So I stared at my setup, while finishing off my glass of Jack.
My setup, XB1 -> via HDMI -> 7.1 Reciever -> via HDMI -> TV (headset is TB 800x via optical)
Here is what solved it for me, and I have a feeling would have good success rate for others. I am not up to date on HDMI knowledge, but I know some here are (maybe
@NewBlacksmurf still reads here? I remember they were always quite informed of things...) I think if I had a higher quality HDMI cable to handle more data per second perhaps it may resolve issue? Not really sure, but sounds logical no?
In XBox settings, I turned off HDMI audio, was set to 7.1 (since, stereo muted while using headset)
Problem INSTANTLY went away. Turn HDMI audio back on to 7.1, INSTANTLY start hearing audio issue again.
After turning it off again,
I played from 8pm, until 4am with NO CHAT AUDIO PROBLEM.
I am willing to test more if it helps resolve this issue, as I have seen posts about it as far back as June this year.