Sound decoder from Xbox one

The dtsmaster code once you uncompress it what do you get? Yup that's right the pcm code. Now why don't they both sound the same? Because you are dealing with two differenet types of sound decoders. A console for sound decoding is no where near the level
of a decoder on a receiver and especially a higher end processor. I don't know why they go that far to decode the sound when they are low end of the spectrum as far as sound quality. I have a Xbox one and also would like native bit streaming. So my higher
end processor can decode it and do what it's job is. And that is to decode sound as it's highest quality then pass it in pcm to my amps. So in the end dtshd is just the zip or rar version of the movie industry. consoles or lower end devices should never decode
dtshd as they are not the same qualility. Let the public with their own receivers handle what their receiver was made for. To decode sound. Until they fix this I might give the Xbox one to my son and buy a oppo 105. Now that is a real decoder there.

You are going to want to run the Toslink optical from the 360 to the PX5 decoder and make sure the 360 is set to output 5.1 Dolby Digital. It will let the decoder downmix the signal to stereo and do a better job of simulating surround sound. Then it looks
like with another optical cable you can run it from the PX5 decoders optical out to your TV or other sound setup.

@WillyBurz

As GZA said, the Xbox One will decode all audio and re-encode it to DTS/Dolby anyway. By using uncompressed, that last (redundand) step can be avoided. So there is no way you can let your Denon do all the decoding. The Xbox One will decode all your audio
in the first place in order to mix in all the UI sounds, even if you set it to bitstream out. See?

The Xbox One does not output Dolby Digital, which is just a compressed/encoded bitstream that would be decoded by your receiver to multichannel 5.1/7.1. Instead, the Xbox One takes the incoming compressed bitstream (e.g. DD, DTS, etc.) and decodes it itself
(necessary for it to mix in its own sounds from the overlay home screen etc.). It then outputs that mix to your receiver as uncompressed multichannel PCM (5.1/7.1 depending on your audio setting on the Xbox One). (It would be pointless and reduce quality
to reencode this mix to DD to output to the receiver for the receiver to decode again.) Your receiver may allow you to apply different "effects" (Cinema, Music, etc.) to the incoming multichannel PCM.

Thus, the difference is that the Xbox 360 outputs the compressed DD bitsream for the receiver to decode to 5.1/7.1, whereas the One decodes the bitstream itself then outputs the decoded 5.1/7.1 PCM to the receiver (which doesn't show DD/DTS because it is
receiving the already decoded/decompressed multichannel audio). You should end up with the same quality audio in the end, only the location of the decoding has changed...

update:

I had a chance to try out my brothers xbox one. same issue. so it has to be the sound decoding. i hope it gets fixed.