Meta is making audio spatialization on Quest more realistic by upgrading the HRTF model. Spatial audio works by using a Head-Related Transfer Function (HRTF), a mathematical function that calculates the filter to apply to the audio for each ear to make it sound like it was emitted from a precise point in 3D space relative to your head. It’s completely different to the basic audio panning used in most non-VR games.
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