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Exactly why it shouldn't matter, the AD700 sounds good in gamming even without it but the virtualised surround is differnent and apparently it helps. My roomate owns an A40 and I feel the Dobly surround thing is weird, kinda like how I don't like CMS3D. If feels like it is all around me but it doesn't sound right. I don't own AD700's though.
I feel the exact opposite. Once you use Dolby Headphone for gaming, and stick to it for a little bit (especially for FPS games like Call of Duty), most people will NEVER go back to regular stereo. All my headphone purchases MUST work well with Dolby Headphone or I'll return it ASAP.
AD700
K701
Creative Aurvana Live
KSC75 (yup, it does well for gaming)
DT770
These are the headphones I felt had great synergy with my Mixamp. I tell anyone, you aren't really gaming with headphones until you've played with Dolby Headphone. Of course, those who have listened to regular stereo forever would be against extra processing, but it's a must for competitive gamers. Nothing like being able to hear everything around you in a 360 degree soundfield as opposed to just left and right.
For under $100, I highly suggest the Creative Aurvana Live if you want overall performance. AD700 if you want headphones purely for competition, as the lack of bass will put off some.
As for budget headphones with good DH synergy, the Senn HD201, Philips SHP2500, and KSC75 do very well.
If you wanna save money and stick to regular stereo, get a Fiio E5 ($20), and an RCA female (red and white audio) to 3.5mm (1/4") male cable (<$10?). Console's RCA out to the cable, and cable to the E5 for amping. Works extremely well... (though I had to get a RCA female to the big headphone (1/8") and then get a 3.5mm adapter...I was in a hurry and couldn't find the other cable.)