What you are seeing here is the Primal Wireless Headset for the XBox 360. As the name implies, it is wireless, and it uses digital infrared transmission to achieve this ability.
The Infrared is designed as not to inferfere with WiFi networks. It has a range of 25 feet, and it includes a wireless microphone. In addition to the XBox, it is also compatible with home theaters or TV audio.
You should be able to pick up a pair of these for $99.99.