1. We don't know if that holds true for XSX
2. Microsoft's approach is to pre-bake the complex environmental simulation, which reduces the costs of objects significantly. Their demo from 2019 talked about being able to process 50 objects in 1.56 ms, and that was not being done on specialized hardware.
3. For all we know, Atmos may only be used as the output format to your speakers, with the intent being an upgraded Windows Sonic or a new option for headphone users. Or maybe Atmos just handles the HRTF. Perhaps you could process audio for 500 objects and then mix that down to 32 Atmos objects if it's being used, without there being a meaningful difference in how it sounds.
Mark Cerny's idea of being able to simulate every drop of rain in a storm around the player individually (hence Tempest Engine) is interesting, but is only one approach - and may not be the right one.
People don't realize how big a deal it is that Project Acoustics largely automates the process of environmental modeling/simulation rather than having to set it up by hand or using a relatively small number of rays to trace the path of audio.
I think people should be more excited about the renewed focus on audio tech from everyone this time around, rather than fighting over whose audio system is better without having ever heard either of them in a real game.
It may be able to playback a pre-recorded bitstream of Atmos content.
But the PC/Xbox solution encodes game audio
to Atmos. Games like
Resident Evil 2 on PC/Xbox support Atmos, while PS4 is stuck with 7.1 audio.
And they have a
Dolby Atmos for Headphones 3D Audio option.