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Yes it's possible this is what I do in my living room. My xbox + optik tv + ps3 + DVD are hdmi'ed to the tv and all the tv audio output goes through an optic cable into a rotel amp with a 2.1 setup. I think it's pretty common for anyone who has a DVD player + cable box and doesn't want to use the built in speakers. You should be able to select to use the line in for audio on your tv
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