With games DTS:X for headphones sounded a lot better than Dolby Atmos for headphones but neither compares well to the latest Soundblaster AE and Sennheiser GSX. Alas binaural and environmental sound is very much a tertiary concern for a lot of gamers so its never recovered from the Windows Vista fatal blow.
Now we have the worst sounding solution developed for home theatrees that solves none of the PC gaming issues and doesn't even really do a good job with Movies either on its way to complete dominance. Its quite disappointing how the sound market has played out after all the work done by AMD for raytraced sound reflections and the early hardware implementations that did a similar thing alongside environmental effects and binaural directional sound including the vertical.