Capturing Xbox One Party Chat Using Elgato's Game Capture HD
This page describes how to capture and record Xbox One Party Chat using the Xbox app on Windows 10 and Elgato's Game Capture HD. For information on the basic setup which is common between OBS and Elgato's Game Capture HD head here. This page assumes you are otherwise familiar with capturing and/or streaming with Game Capture HD and simply covers the additional software and settings required for this setup.
Using Elgato's Game Capture HD has some notable advantages over OBS including the ability to record and archive full 1080p60 while streaming to streaming services at a lower quality as well as separating out any webcam overlays and chat audio. This means you can have a pure archive of the game audio and video at full quality while streaming to Twitch with webcams and party chat included at a lower quality.
This setup requires a bit of extra software because Game Capture HD won't allow you to use system audio as a source for the commentary track. To redirect system audio to something Game Capture HD can record you'll need to download VB Audio Virtual Cable from http://vb-audio.pagesperso-orange.fr/Cable/index.htm. It can be difficult to find the download link so look for "VB-CABLE Driver (Donationware)" a little ways down the page. Install this app and you'll now have a new Playback and Recording device available in audio preferences:
Recording Party Chat with Game Capture HD
Under Playback AND Recording set this new device as your default device. This now means that all audio is output to the VB Audio Virtual Cable. When you next open Game Capture HD you'll have a new device available to you to record commentary from. Select the VB Audio Virtual Cable option as shown here:
When you click the Commentary button any system audio (which now includes all of the party audio output by the Xbox app) will be included in the commentary track. Under the audio mixer you can eliminate/mute any other audio source listed, just be sure to leave System Audio at normal because the Xbox app doesn't provide a way to change what audio device is used nor does it define a different one.
When your normal Xbox user is in a Party you'll see this while viewing your account in the Xbox app. From here you can easily join the Party.
You'll now be part of the party and all party chat will be output on your PC. Once you add your recording user you must mute that user immediately in the Xbox app. To mute the recording user simply right click and choose "mute me." If you don't mute the user all chat audio will loop back causing an echo.
Hopefully this gives you the information you need to get Xbox One Party Chat included in your next recording or stream. If you have questions or tips on how to do this even better (I'd love to find a way to make recording just the party chat easier without losing system sounds to my speakers for example) you can contact RealAngryMonkey via Xbox Live!