[hungry_hog]

Wondering if anyone can shed some light on this mystery.

When I play on PSN (specifically Outrun online and inferno pool) I can hear the others players speak in the background. It's a muffled sound but I can make out a few words.

I guess players have headsets/mics and this is simply the background noise coming through?

It's amusing and disturbing at the same time!

[Ed the Penguin]

Sounds like it! If you go into the Accessory Settings -> Audio Device Settings, you will notice that the output device is set to your speakers. You can disable it from there if it's irritating!