You're supposed to make the systems send digital stereo or linear pcm, so that everything can get audio from the optical. Of course, you'll want to switch back to Dolby Digital if using asurround setup or dolby headphone, etc.
Game systems have been doing this since last gen.
My xbox 360 won't let me watch dvds with sound through the dac because my dac won't decode dolby.. but I can watch xbox video and play games with the sound on the xbox360 set to stereo..it won't let me watch dvds because it's in 5.1 and theres no sound with 5.1 or stereo my dac won't decode a 5.1 signal!
Edited by martin vegas - 3/19/14 at 7:16am