Firstly I would like to say hello and thank for a great deal of knowledge that can be found on this forum.
I need to find a solution for my desktop sound system. I have got 3 elements: PC, Xbox and PC monitor.
I would like to add that PC has optical out, Xbox has an optical out but the components are hooked up to a CRT TV so I have to use optical out for audio and HDMI for video. The monitor does not have HDMI input so I will need to use some kind of HDMI to DVI-D cable/adapter.
My question is now, what can I use to join these elements together? I would like to have one piece of gear that I will be using firstly mainly for headphones but later I would like to add speakers.
I was recommended to get a receiver but. It seems pretty big to be placed on my desk. Also, I am not sure if I can use HDMI form the Xbox and then HDMI to DVI-D cable to connect the monitor to the receiver (and I want it to process the sound).
It seems like a fairly basic setup but I have got an impression that it is getting complicated.
My budget is quite limited, around 200$.