It should be noted that these "surround sound" headphones are really transposing a 5.1 channel signal into two stereo speakers, but the results are excellent all the same. In Call of Duty 4, I could track a helicopter's proximity to me perfectly (with exception of just behind my head). And in Project Gotham Racing 4, cars whizzed by ears with aggressive speed.

As for the chatting, it's a complete pleasure in the X4s. Not only do both sides of the conversation benefit from improved audio clarity, but you hear your own voice mixed in with the game audio. This audio loop is to help keep you from shouting, and I think it works in practice. Plus, the mic's wire is supported by a pliable but durable metal skin—it feels 100x better than the stock 360 headset mic, like production-level gear.