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"Dolby is trying hard to establish Dolby Digital as a popular standard not only for movie theaters and home theater systems, but also for games. In fact, more and more home users are already hooking up their console game systems and PCs to home theater systems or smaller 5.1 multimedia speaker systems, so the hardware is already out to take advantage of Dolby Digital. Until this year, it''s been possible to use Dolby Digital 5.1 audio for only pre-encoded material, such as DVD movies and game cutscenes. However, Dolby has developed a way to mix 3D positional sound effects with 5.1 background music in real time and encode the audio on the fly with minimal latency (around 50 milliseconds). The only announced hardware product that supports this new Dolby Digital algorithm is Nvidia''s MCP audio chip for the Xbox, but Dolby expressed confidence that it won''t be too long before we see something like that on the PC. At the Dolby booth, Blizzard demonstrated a version of Warcraft III in Dolby Surround Sound. There were a few clues that the game may also support true 5.1 in the future, but Dolby couldn''t go into any depth on the subject."
http://gamespot.com/gshw/stories/flat/0,12880,2766024-5,00.html