... But imagine a next gen (smaller and lighter) VR system with THX Spatial Audio technology built in or even with just Sony's 3D wireless headphone plugged in. I suppose the PS5 could leverage their existing 3D catalogue for this.
I've finally tried THX Spatial Audio. Each speaker placement and volume are configurable which is very nice. The really great thing about THX SA is that it not only works with any headphone but also over Bluetooth. I have a pair of very light wireless headphones with 40mm drivers that I wear with my VR headset. So I'm maybe a couple of generations away from my quote above.
Nothing beats watching Pacific Rim in 3D with Atmos. But this tech is not too far off.
THX SA boosts LFE to the point where I'm hearing lower frequencies that I can't quite hear on my actual system because I can't turn the volume up to reference levels.
Overall THX SA is the closest thing I've heard to proper Atmos surround sound over headphones. Think of it like having a 2 speaker Atmos system where you can angle your speakers to get overhead effects over your head, but front to back panning is poor. This isn't as much of an issue as one might think because front to back panning isn't used all that much except for very specific scenes (plane flyovers etc).