Dolby Digital and Dolby Atmos for home theater root of audio dropping problems

The Xbox audio settings I have available are as follows:

HDMI audio:

* Stereo Uncompressed

* Dolby Digital

* Dolby Atmos for Home Theater

Headset Format:

* Stereo Uncompressed

* Windows Sonic for Headphones

* Dolby Atmos for Headphones

* DTS Headphone:X

Tried all of them. Nothing helped.

So after following up with the Dolby Access support team, apparently games aren't supported on home theater, only on headphones:

"Unfortunately, Games encoded with Dolby Atmos audio are not compatible with Dolby Atmos for Home Theater, as they are specifically configured for Dolby Atmos for Headphones. If the content you are experiencing is not compatible with the app you are
using, then audio will cease, or will simply output as regular stereo output.

To clarify, Dolby Atmos for Home Theater is included at no charge with any Dolby Atmos supported hardware, such as a receiver or Xbox One X, and is used to activate Dolby Atmos features via HDMI connection for a Dolby Atmos certified AVR, soundbar,
or TV."

"Unfortunately, the version of Dolby Atmos included with your Xbox is Dolby Atmos for Home Theater, which is not compliant with any gaming content."

It kind of strikes me as hard to believe, or that this won't be addressed, but that's what they're saying for now. That said, it still isn't working for me for Netflix content either, so I'm going continue troubleshooting with them and see what's doable
and what's not. Fingers crossed.

I am able to get Atmos on Netflix with my denon x4400 with the audio settings bitstream out and dolby digital for home theater selected. It makes you download the dolby app to change that setting.

Hi bladerunnin,

Thank you for posting on the Xbox Forums.

The reason you need to unplug the base station if you want to use Dolby Atmos for Home Theater is in the way the Dolby Atmos sound format is processed within the Xbox and Dolby Digital 7.1 in the A50's and DTS 7.1 in the TB 800X respectively.

The Dolby Atmos sound format for Home Theater on any platform is processed in the device itself through HDMI, in this case the Xbox's operating system and software. The Xbox will decode the audio in a bitstream format through HDMI for Dolby Atmos HT. The
headset base stations (not the Xbox) process and decode the audio formats and then send the data to the Xbox in bitstream through optical. Since everything is processed through the base stations for the headsets, simply turning off the headset won't remove
the base station as a device that is hooked up and recognized by the console, at least while the audio settings in the Xbox are still set for Optical audio: Bitstream out. That may be why you are getting the message that Dolby Atmos is only supported over
HDMI.

Under Speaker audio in the Audio output settings of the Xbox, try turning off Optical audio while leaving HDMI audio on Bitstream out, then under Bitstream format select Dolby Atmos for HT. When wanting to use the headsets, turn off HDMI audio and then put
Optical audio on Bitstream out, then under the format choose Dolby Digital (Astro A50) or DTS Surround (TB Elite 800X). If you have tried that but still can't enable Dolby Atmos while you have everything plugged in, then just disconnect the optical cable but
leave the USB plugged in, which is what charges the headset, not the optical cable.

Apparently dolby atmos will only transfer through hdmi and not optical,i was just wondering whether it is something to do with hdr

Do you have "let receiver decode audio" enabled in Settings > Disc & Blu Ray > Blu ray?

And after that go to Settings > Display & Sound and go, under HDMI audio, to Bitstream format and select "Dolby Atmos for home theater".

After doing this the blue light for Dolby Atmos should be lit on your receiver when it is decoding Dolby Atmos input.