Would this setup work?

[DrShadowSML]

I am on a budget and am trying to figure out how to setup a surround sound for my living room. I would like to have a Wii U, a Laptop, my HD digital cable box, and a Chrome Cast be able to connect to my TV for video output and use external 5.1 surround sound. A receiver with that many HDMI inputs is too expensive for me at this time.
So I was thinking of the following: using a 5-port HDMI switch ($15) with all the devices connected to it. This switch then connects to the TV via HDMI. I then use a SPDIF coax cable from the TV to a home theater system, specifically: PHILIPS HTS3051B/F7 Blu-ray Home Theater System ($120). I would also connect this Blu-ray system to the HDMI switch so that my blu-ray movies can show up on my TV while still using the surround sound.
Would this setup work for all of its intended purposes or am I missing something? Also, would all the devices properly push out 5.1 digital surround sound, or does my setup hinder the quality?

 

[americanaudiophile]

It will work if the TV passes 5.1 channel audio out to the HTiB. Sometimes the source will detect the TV through the HDMI and only output 2 channels. Check the TV manual or menu and see if there is a place you can select this.
If you cannot then you would use a switcher like this
http/www.monoprice.com/Product?c_id=101&cp_id=10110&cs_id=1011002&p_id=5557&seq=1&format=2
to extract the audio before the TV. The TV audio out would only be used for the Chromecast stick.

 

[DrShadowSML]

It will work if the TV passes 5.1 channel audio out to the HTiB. Sometimes the source will detect the TV through the HDMI and only output 2 channels. Check the TV manual or menu and see if there is a place you can select this.
If you cannot then you would use a switcher like this
http/www.monoprice.com/Product?c_id=101&cp_id=10110&cs_id=1011002&p_id=5557&seq=1&format=2
to extract the audio before the TV. The TV audio out would only be used for the Chromecast stick.

That switcher is exactly what I needed. Thank you so much!