I find it difficult to figure out what Headphone:X actually is, after reading through much of this thread.
It's one of those headphone virtualizers (like Dolby Headphone, Smyth Realizer, etc).
Headphones give the impression of sound in your head, making the soundstage feel like a hat you're wearing. Headphone virtualizers attempt to externalize the sound to give the impression of speakers in front of (and around) you.
Plenty of companies have tried their hand at creating a headphone virtualizer. Headphone:X is DTS' attempt.
I find it difficult to figure out what Headphone:X actually is, after reading through much of this thread. Is it a method for downmixing multichannel sound to stereo that is especially tailored to headphone listening? Am I warm?
I don't understand what is remarkable or interesting about that. If there were some customization of the downmixing to a particular listener's room or his ears, that might be new, but that doesn't seem to be part of it. So what is the point? Isn't it just a form of headphone stereo? Why should it take any special processing on the listener's end to hear it?
By the way, my Turtle Beach XP400 headphones, which downmix DD 5.1 to headphone stereo, do allow for some customization -- supposedly you can adapt them to your ears by fiddling with the virtual angles of the virtual 5.1 speakers you're listening to. (I haven't yet experimented with this feature.)
Its more geared for the mobile market, for those on cellphones and tablets that watch movies.
I just listened to the demos available for Android and well the audio clips are so so but that DTS Demo blows my mind away, very impressive, I honestly though my surround system was on and was like wait thats coming from my headphones. ^^;; I cant wait to see the full app to be released.
I know DTS could release an app that uses the available hardware to do the processing but of course they designed a chip that will do the processing and want to push that hardware into various products, I mean having a dedicated chip to hand audio processing is always a plus but the price increase that will cause I think will slow the adoption of such tech.
The current Snapdragon 800 series should be able tackle that task IMO, and they are becoming widely available among Android sets. It would be a good start and make it more accessible for more users. I didn't realize DTS is in the chip design business now, I wonder who are their partner in this.