Xbox Live chat on the Xbox 360 console
Overview Use your Xbox 360 headset or Kinect sensor to chat with your friends through the Xbox 360 console, either as a party or in private conversations. Set up chat Setting up communication is simple. Just connect your Xbox 360 headset or Kinect sensor, and then set your online safety settings. You can allow communication with everyone or just your friends. Connect your headset or Kinect sensor: If you're using a wired headset: Connect it to your controller. If you're using a wireless headset: Connect it to your console. If you're using a Kinect sensor: Sign in to Xbox Live. For more details check here