So my kids want to be youtubers and I want to keep them excited about it. I wanted to buy them gear, setup software and get them into the details. Here is what I ended up with.

Hardware

Logitech HD Pro Webcam C920

I picked up two of these to capture the kids expressions while they are making a video.

TONOR XLR Condenser Microphone w/ Arm Stand

I bought two of these condenser mics to capture both kids voice. These also improve audio and only pick up audio from one side; this prevents echo from two people recording into one video at the same time.

Focusrite Scarlett 2i2 (2nd Gen)

You plug the two microphones into this USB Audio Interface and it goes into the computer with through USB.

Software

Open Broadcasting Software

Free video recording and live streaming. This software is so easy to use, the kids had no problem picking it up. With it they can create a opening screen with a images and text, transition into game play and transition again into a closing screen. It was also simple to overly the webcam so you could see them while they play. Look on youtube for a tutorial and you'll literally have this working in minutes.

OpenShot

Free Video Editor designed to be an easy to use and quick to learn. We also watched a quick youtube tutorial on this and were able to cut out the parts of their videos they did not like.