Would Sony WH-1000XM3 Stereo Headphone + Dolby Atmos Windows 10 Addon

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Give better SQ than buying a proper 7.1 Gaming Headset like SteelSeries Arctis?
How accurate is bot placement during gaming using Atmos?
 
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I can't personally answer the first question in that I don't have either. I suspect the strengths and features of the XM3's are away from gaming although their drivers are likely to be better than what's in the Steelseries Arctis.

With regards to the second question, for years I've been using virtual surround sound (Mixamps, Creative SBX etc.) and I do think Atmos can be very good at being able to position sounds with some degree of accuracy, although it depends on the game in question. In the black friday sales I also picked up the DTS Headphones:X license as it was 50% off (works with the same games) and initial impressions were more soundstage and depth in Borderlands 3. However I really need to spend more time with both of these though.

There are 14-day trials for both Dolby Atmos for headphones & DTS Headphone:X for both Xbox and PC before you have to pay the c.£15 licenses to unlock permanently (although these may be one sale in the current Xbox/Windows Store sale - I'm not sure). The DTS app has a the ability to choose a profile for a lot of popular headphones and play manually with sounds around you.
 

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most times it's the games that are the issue with sound positioning
no amount of money spent can get you great positional audio on warzone for example because it's the game audio itself thats broken
I wouldn' go throwing money at 5.1 and 7.1 gimmicks just get some decent headphones first and foremost
the sony's are known to be the best for noise cancelling mainly
 
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3D audio is a potential game changer though albeit there aren't many games that have done it well so far. Given the software licenses for Dolby Atmos or DTS can be had for c.£8 in sales it isn't particularly expensive. And of course it can be used with any stereo headphones on any soundcard/DAC/AMP hardware across Xbox One, Series S|X and PC.

I'm not sure it's a gimmick.
 
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3D audio is a potential game changer though albeit there aren't many games that have done it well so far. Given the software licenses for Dolby Atmos or DTS can be had for c.£8 in sales it isn't particularly expensive. And of course it can be used with any stereo headphones on any soundcard/DAC/AMP hardware across Xbox One, Series S|X and PC.

I'm not sure it's a gimmick.
That's my thinking
 
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most times it's the games that are the issue with sound positioning
no amount of money spent can get you great positional audio on warzone for example because it's the game audio itself thats broken
I wouldn' go throwing money at 5.1 and 7.1 gimmicks just get some decent headphones first and foremost
the sony's are known to be the best for noise cancelling mainly
Main use will be listening to music with some gaming, any other headphone models I should be looking at in the £100-£200 range?
 
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Main use will be listening to music with some gaming, any other headphone models I should be looking at in the £100-£200 range?

I know you've quoted someone else, but I just wanted to say there are so many good choices you could look although my thoughts on some headphones for gaming and music that I own/owned (so not exhaustive):

Beyerdynamic DT770/880/990/990 Pro (all c. £90-130) - The 770 are closed-back. The 880's are semi-closed back and the 990 models are open-backed. I have the DT 990 Pro (250 Ohm) are they are fun, but wide soundstage which is generally great for gaming. The complaint with these is the treble which some can find harsh. Build quality is fantastic. Parts are cheap to replace. Depending on the model you go for you may need an AMP.

AKG K7xx - very neutral, super-wide soundstage. I have the K702 (K701 & K702 £110 to £130) and K712 Pro (c.£180-200) and adore them; my favourites. For some situations I actually prefer the former. The weak point is the elastic headbands and funny design and the price of official replacement parts. The K712 Pros are more refined version of the K701/2 models but with gel foam earpads. Do need an AMP.

I also have the AKG K361 (c.£70) which are great easy to drive, closed back headphones I've had since earlier this year and are fantastic for using with the laptop for everything. A bargain for what they are, although where they have AKG build issues remains to be seen. I've paired mine with a mod mic for when I need it.

Sennheiser HD 599. Although recent addition has been the new HD 560S which some people love. I haven't got these but they sound like they might be great for gaming. I used to have the HD 598 (now HD 599; sometimes at c.£99) and they were great all rounders. Soundstage, detail, fairly neutral. Very comfortable, durable and can be plugged into anything without the need for an amp.

You often see 'Mass Drop' variants of the above which are highly regarded although with the new import duties from the US, I assuming these are pretty much too expensive from a European perspective now.
 
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