It is absolutely transformative. When I upgraded from 5.1 to 7.1 I thought it would be no big difference. Just two more boxes. But once I tried Horizon Zera Dawn, fighting against a T-Rex, it felt like a different combat system. Rocks were flying and crashing around, lasers, explosions, the earth cracking. The entire fight had a completely new level of presence for me. I could pinpoint where the flying debris was landing left and right. I wasn't expecting such a big difference from 5.1 to 7.1 (especially since I don't think that Horizon supports 7.1, it must be my AVR doing some cool upmixing or whatever). So yeah, transformative is the right word. I can't imagine how amazing an Atmos setup must be with speakers above you. Imagine playing Hitman and listening to the footsteps of people a room above you (Imagine a P.T. horror game by Kojima).
That's what I love about games, they much much better use of multiple channels than movies. In movies, it's mostly in some cool action scenes but in games, all channels are equally engaged since they work according to the camera. Throw a rock in Control, quickly turn around to kill another enemy and hear the rock kill an enemy behind you, I live for this shit.
Wow, you're really selling it there. I wonder how this headphones based 3d sound on next gen consoles is going to compare to surround sound speakers.
I presume there's no good solution for small rooms?