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Thank you. This is how I figured it as well. However, AFAIU, Mad lust Envy was stating that there is a distinct difference between USB Discrete PCM -> X7 USB input -> SBX Headphone virtualization from X7 headphone output vs. Optical DD Live bitstream PC output -> X7 optical input -> SBX Headphone virtualization via X7 headphone output.
So, I was merely trying to clarify what is this difference and how does one notice it.
I guess I'll find out, when I get my X7 :-D
Please don't take my word as gospel. I still go back and forth to see if I'm just hearing things. Enjoy the X7 as is. You do NOT need to feed it DD into the optical input if you're a PC gamer. But you may wanna try it, because I'm convinced directionality is pretty obviously better with a DD source as opposed to USB.
As I have said before, it's like the SBX conversion works best with Dolby Digital.
And lol, people are still trying to argue about USB being lossless = better. Clearly not understanding what we are implying.