I can't say exactly what is causing the problem? Are you sure that hardware is working fine? If you have considered other software, I presume there is no setting issues.
Ok, so i have tried many different ways to fix this audio problem ive been having. I can hear myself and the gameplay completely clear, the problem is when i play back the video i can barely hear my friends voices. I have tried different recording software and i have also tried using skype to record audio. Someone please help me with this problem!!!