Ok to clear up what's happening. I use Astro A40 headset and I have a soundcard that it is plugged into for the 7.1 surround sound from the headset. For the 7.1 to work I have to have the "Asus Xonar DX Audio Device" set as my default device under my playback devices. I have tried setting the sound to come from headset and the soundcard audio device in OBS and neither of them are capturing game sound. Not sure what the problem could be. Any sort of help would be extremely helpful.
