According to Eurogamer, Xbox Live will get a system-wide audio quality upgrade in concert with the release of Kinect this fall. That means the 13-year-old on the receiving end of your profanities will hear you with crystal clarity.
At the Edinburgh Interactive Festival, Xbox Live Europe GM Jerry Johnson said "it's time for us to move on" from the original 64k audio connection. "A crackly headset on the top of your head – not what people think of when they talk about popular entertainment." So true! Eurogamer via Joystiq]