A:Answer Two headsets can be used on the same console, but both headsets will play the same game audio. Each player will need to log into Xbox LIVE chat separately. Each player will need his/her own Xbox controller.
Microsoft has disabled any kind of "local console chat", or chat between two headsets on the same console. To summarize:
- Both players can log into Xbox LIVE using their own individual gamertags, which will allow each player to communicate with others online.
- However, two players on the same console cannot communicate with one another.