That's not what the setting does. The chat mixer was originally intended for Kinect environments, then to a lesser extent when stereo chat headsets were available. What the setting does is adjust the balance of TV and game/party chat that comes over the speakers when there is no headset connected to the controller/console.
Microsoft: "Xbox One is Kinect" Corporate vice president Phil Harrison says Xbox One and Kinect are not separate systems, no plans to release console without the motion- and voice-control technology.
Only a handful of Kinect games have been released for the Xbox One so far and, unfortunately, they have been pretty disappointing and actually worse than their 360 Kinect counterparts. The hardware itself is a vast improvement on the performance of the Xbox 360 Kinect, but the games have been very underwhelming so far. Unlike the Xbox 360 dashboards, shown above, that use a similar styling, this one was a certified mess to navigate because it mixed games with TV and everything else on the home screen. Always-on internet connectivity, restrictions on the sale of used games, no self-publishing by indie devs, and mandatory Kinect -- all gone. The Xbox One is now, essentially, an Xbox 360 with In one corner, you have the $499 Xbox One, a gaming console that wants to be the center of your living room experience. PS4 vs. Xbox - Tom’s Guide Kinect 2 vs. Playstation Camera - PS4 vs Kinect is the camera that comes packaged with every Xbox One console. It can be used in Boss Mode in Plants vs Zombies: Garden Warfare. When playing Boss Mode with Kinect, hover your hand over Keeps getting better - "cloud powered" means Xbox One and games grow with you over time. Advanced voice and motion control open up new game experiences like never before. Kinect sold separately. Get the facts. Play Xbox One games online or offline. Your Xbox One does not need to be connected for you to enjoy offline features of games. giHi.