I Want to use an optical cable to connect my x box 360/ps3 to surround sound.Do optical cable quality matter?

Yes you are correct that a (fiber) Optical cable is excellent for sound and picture quality. Esp. Blu-Ray!

A signal splitter will distort some although you most likely will not notice it. A signal switcher box would be used for one or the other input/outputs of your systems (TV/Surround and X-Box/PS3).

The signal switcher is more of a hassle to use versus having a "constantly on" and available signal to the both of them with the signal splitter. Also the signal switcher will distort each channel by itself as much or more than the splitter will.

Let's review: Splitter = Good quality with little distortion. Always on and available for every component w/ less wiring and hassles. Optimum or best quality.

Switcher = Bad or so-so quality. More wiring and more hassles each time it is used for it's application(s). Quality may not be as good as a splitter.

Double check with your local audio/video store and see what they suggest and what is available in your area.

Hope This Helps! BTW HDMI Is even better than optical...

Optical cable quality doesn't matter at all for the distances you'll be using. It either works or it doesn't. Buy the cheapest. Here's a good source:

http://www.monoprice.com/products/subdepartment.as...

If you are trying to connect two optical inputs to one input, a splitter will not work, you can't combine two digital signals. Here's a cheap mechanical switcher:

http://www.monoprice.com/products/product.asp?c_id...

But if your surround system also has a coaxial digital input, you should use that along with a converter box. This way you can switch sources using your surround system remote:

http://www.monoprice.com/products/product.asp?c_id...

Most optical cables are going to be made about the exact same way so there shouldn't be any quality issues with any of them.

I would use the coaxil digital output if you have it it works as well as optical and no switcher needed