Headsets are actually pretty important in competitive online games, if you are working with a team. Of course, you can still play without headsets, usually I do, but your team can function a lot better if you are communicating and giving each other information while you're playing. I am certain that using headsets and playing competitive FPS games with a group of friends and acquaintances over LIVE can dramatically improve your success rate.
In FPS games, there tends to be a lot more going on from second-to-second than in a lot of other games. So having a headset to cooperate with someone is key.
In a typical FPS game, you would probably have someone let you know what their plan of attack is, and which weapons they are going for, as well as if they need backup whenever they are going to a certain spot. People who are REALLY into FPS games break everything down to a math, to the point where they are literally keeping track of approximately how many seconds they have left until certain weapons spawn again.
I remember from the times I played firefight mode in Halo 3 ODST, me and the strangers I was playing with worked out different plans each time we played. We ended up deciding to grab the really good weapons and dropped them into this corner of the map where they wouldn't vanish at the end of each wave, and we tried to stock up on energy weapons of any sort since they dealt better damage to the skull-enabled shielded enemies in later waves. You also had to try to conserve ammo in general as much as possible. But going for those achievements, that took a lot of cooperation. It might not have been possible without a mic, unless I was so good that I could get through all of the sets without dying much.
I was playing Dead Rising 3 one day, and a stranger randomly joined my game. I didn't have a headset, neither did the stranger. I was trying to work my way through the story and reach time-sensitive side-missions, but the stranger was busy building wild vehicles and going crazy. I was fortunate that I got the other player to enter a doorway with me, otherwise they would have hindered my progress rather than aided it.
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