Input Volume Low

I have a MacBook Air running HS and the input volume is low. When I speak it should sense the volume level of my voice and the meter goes up/down as I speak louder or softer. It does work but I have to put my mouth right above the keyboard for it to work. If I snap my finger above the keyboard it does pick up that sound as well. The further away I am to the laptop it will not pick up my voice. It seems the left side is better than the right side.

I have tried PRAM and other account with the same result. I am thinking it is a hardware issue.