The more expensive gaming capture devices are encoded at a higher quality. This is strictly for Standard Definition (SD) or analog devices. If you use the Xbox in SD, then I wouldn't see why it wouldn't work well. Although I have never tried. I would be interested in seeing the difference.
I have not used any other game capture version. I have used this elgato video capture device for converting vhs tapes to digital, and I also used it to capture some of my xbox (old xbox -not 360) gaming and it worked great. Easy to use. The footage looked every bit as detailed and great as it did on my tv screen...not blurry or low fidelity. Hope this helps!
Well, I would like to add that if u want to capture games than its a wrong device, this is for only compatible for VHS cassettes to digital format, u must go for" elgato game capture device" instead of this product