No it does not. You are just saying that to try to get back at me. The xbox does not output the users audio, only the other people. Again, you dont know what you are talking about. Look it up, because you are wrong. Please try to educate yourself before trying to argue about something you know nothing about. Considering
the xbox360 has never been able to output its own mic volume, your statement is false and we can see that you made that up.
The only mic volume the xbox outputs is other users. The only way to do that is to go into the preferences and select output to both, so you can hear it in the headset and tv. In turn, the elgato will pick up the other users, but will not pick up your mic. So stating that the elgato that your friend has does it, is completely untrue. The only way to record your mic is to connect a mic to the pc, not the xbox. Thanks, next time do research before you try and argue.
Ill even include a couple of links to prove you just made that up:
http://support.elgato.com/index.php?_m=knowledgebase&_a=viewarticle&kbarticleid=4539
http://answers.yahoo.com/question/index?qid=20130207010220AAZKOCZ