I believe that e5 cannot natively decode Dolby digital/dts (I think g5 cannot either) but windows outputs sound in 7.1 to the e5. And e5 creates virtual surround sound in your stereo headphones.

E5 works with creative sound central software.

On windows e5 shows up as 7.1 speaker system. Works great for movies and games. On Mac it shows up as stereo only.

I have registered just to post this: I have bought the e5 a few weeks ago. Creative have updated the drivers and the firmware of the e5. It works with PS4 with no problem. It is stereo with the console and the sound is great. It is stereo on a macintosh as well. On windows I get the sweet 7.1...