EDIT 2: The Xbox headset settings (System Settings > Accessories > Headset) do stack with Dolby Atmos. Knowing this, my approach is as follows:
1) Set everything to 0 (all sliders in the middle) on both Dolby and Headset settings
2) Adjust Headset settings first, using these settings: https://imgur.com/a/ijvHnlp The reason for this is these settings stay with the headset if you connect to your PC or phone. So you're basically making tweaks at the hardware level, which is what you want.
3) If you aren't using Dolby Atmos, you're done. If you are, adjust the Dolby settings to your taste. Mine look like this: https://imgur.com/a/KGzIcXh Maybe a little redundant, but I think it sounds good, and the number 1 rule of audio is, if it sounds good, it IS good!
I don't have access to DTS and therefore didn't test it.
EDIT: Dolby Atmos settings here: https://imgur.com/a/KGzIcXh Note I turned off the Surround Virtualizer option. It made my game music and Spotify music sound worse. Try turning it back on for an FPS or a movie to see if it does anything. If you want to use a default Dolby setting, I thought the Game option with the Performance Mode turned on sounded the best of the pre-made options.
Also note that if you are using your headset with your phone or PC, you won't be on the Atmos settings, so it's probably worth configuring the normal Xbox settings below as well as Dolby.
Normal Xbox settings here: https://imgur.com/a/ijvHnlp (since making this screenshot, I have lowered the 8k slider a few notches)
Disclaimer: this is my first wireless gaming headset, so I cannot compare them to any other brand. However, I tested them against my AudioTechnica ATH-M50Xs (pretty decent studio monitors) to try to improve the Xbox headset sound quality.
IMO the Xbox headset sounds really muddy out of the box and lacks a lot of clarity. Here are the settings I landed on. There's still some mud, and my studio monitors still sound way better of course, but it's a lot closer than the default settings:
Let me know if you want to know anything else about the headset. I haven't tested in-game chat yet, just sound quality in a couple games and Spotify.
Troubleshooting tip: when you first get your Xbox headset, if the headset won't pair to your Xbox, try clearing the headset of all existing connections. Hold the power button and mute button at the same time for a few seconds. The light will flash orange and white a couple times. Then try pairing with your Xbox again. That's how I got mine to work.
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