Very interesting field indeed. So interesting, that I'm going to do my master's degree thesis on this subject. In particular, it's use in first person shooters.
My literature research so far has made it clear that this particular field has little theoretical background. Not a lot of research has been done in this field, and most theory is based on movie-audio theory.
As for practical applications, I haven't found any so far. Of course, there are plenty titles and packages which support real-time audio-effect processing and apply them depending on the general surroundings of the auditor. e.g.: auditor enters a hall, so a echo/reverb effect is applied on the sound samples. This is rather crude. An analogy for visuals would be to subtract 20% of the RGB-value of the entire image when someone turns off (or shoots ;) ) one of five lightbulbs in the room. It's a start, but not very realisic at all.
The best work I found was a (2007) PhD thesis by Mark Nicholas Grimshaw, University of Waikato , called The Accoustic Ecology of the First-Person Shooter
This huge pager proposes a theoretical setup for such an engine, as well as formulating a wealth of taxonomies and terms for analysing game-audio. Also he argues that the importance of audio for first person shooters is greatly overlooked, as audio is a powerful force for emergence into the game world.
Just think about it. Imagine playing a game on a monitor with no sound but picture perfect graphics. Next, imagine hearing game realisic (game) sounds all around you, while closing your eyes. The latter will give you a much greater sense of 'being there'.
So why haven't game developers dove into this full-hearted already? I think the answer to that is clear: it's much harder to sell. Improved images is easy to sell: you just give a picture or movie and it's easy to see how much prettier it is. It's even easily quantifyable (e.g. more pixels=better picture). For sound it's not so easy. Realism in sound is much more sub-conscious, and therefor harder to market.
The effects the real world has on sounds are subconsciously percieved. Most people never even notice most of them. Some of these effects cannot even conciously be heard. Still, they all play a part in the percieved realism of the sound. There is an easy experiment you can do yourself which illustrates this. Next time you're walking on the sidewalk, listen carefully to the background sounds of the enviroment: wind blowing through leaves, all the cars on distant roads, etc.. Then, listen to how this sound changes when you walk nearer or further from a wall, or when you walk under an overhanging balcony, or when you pass an open door even. Do it, listen carefully, and you'll notice a big difference in sound. Probably much bigger than you ever remembered.
In a game world, these type of changes aren't reflected. And even though you don't (yet) consciously miss them, your subconsciously do, and this will have a negative effect on your level of emergence.
So, how good does audio have to be in comparison to the image? More practical: which physical effects in the real world contribute the most to the percieved realism. Does this percieved realism depend on the sound and/or the situation? These are the questions I wish to answer with my research. After that, my idea is to design a practical framework for an audio engine which could variably apply some effects to some or all game audio, depending (dynamically) on the amount of available computing power. Yup, I'm setting the bar pretty high :)
I'll be starting per September 2009. If anyone's interested, I'm thinking about setting up a blog to share my progress and findings.
Janne Louw
(BSc Computer Sciences Universiteit Leiden, The Netherlands)