The Netflix Kodi add-on for the Shield is imo proof that this device is fully capable of handling lots of things that can be implemented via Software.
With the Amazon Prime app, there was no update to acquire Dolby Atmos. They just flipped the switch.
The Shield has been capable of bitstreaming DTSMA since 2015, and it didn't take long for Dolby TrueHD to get support as well.
Sent from my Pixel 2 using Tapatalk
Marantz SR7010/Marantz MM7025
Oppo UDP-203 - Nvidia Shield
XBox One X
Klipsch RP-260f - RP-440C - RP140sa- RP-160m - RB10 - Sony SA-WM500