My son has a 360,older version...on the back of his a/v cord that plugs into the back of the 360,is a slot for the fiber optic cord...use that.After playing around with his 360,i went and got an Elite system..and on the back of that a/v cord,there was no slot for the fiber optic..i'd have to buy it separately...as if the Elite didn't cost me enough as it is..so for now,since he's not using his fiber optic slot,we traded cords..lol Don't forget to turn that option on in the 360 settings.Idk about the PS3