the mic is in the dongle for the sound and stuff.... from past experience I'd much rather have a headset while gaming than earphone.... either way I have a turtle beach headphones for the XB1 and if I want I have klipsch earpieces with a mic if I want the other one.... and with Kinect mic and 575 watt output on my 5.1 I'm pretty set up on all fronts.... just need to get a new TV some time next year if 3d is getting traction.... damn I spend way too much money on my entertainment set up lol.... my banker hates me lol