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well, since edwood in his OP salvo referred specifically to game soundtracks, and the last few posts were about codecs, let's remember that Dolby Stereo had its first success in 1976 with star wars, and dolby digital was first heard in batman returns in 1992 and became the digital TV standard, while multichannel mpeg-2 is the european DVD standard. I'm not as confident as others here that lossy compression, or inferior tech of any kind, is going to be obsolete anytime soon. jurassic park already had a better solution in DTS in 1993, and yet very few DVDs or bluray discs will use DTS, using the space instead for alternate languages, voiceovers, out-takes, etc. certainly transcoding has come a long way since mathews' wager with pierce in 1956 at bell labs, or since shannon's surmise that sample rates of 2B times a second would suffice (where bandwidth = 0 to 22,050 Hz gives you 44.1 encoding). but still, what most game titles have been using is actually ogg vorbis (from doom 3 to GTA and from UT 2004 to america's army).
Funny you should mention multi channel surround sound. With BluRay (and even with defunct HD-DVD) there is more often than not a lossless audio track offered. Most common flavors are DTS-HD Master Audio and Dolby TrueHD. Even the lossy formats like DTS and AC3 have double the bit rate available with BluRay. Despite the heavy DRM, physical media is still available along with all the old school copyrights and access for the end user, unlike iTunes movies. (which are laughable for high end home theater use).
I do have an unusual headphone based high end home theater system (Smyth SVS Realiser), so I can appreciate the improvement in audio quality in HD movies on BluRay lately. So while the movie industry is moving forward with technology (even if some is pretty gimmicky like 3-D BluRay), the music industry is stagnating and moving backwards even in some respects.
Oh, and speaking of video games and surround sound, Creative Labs has single handedly held back the entire gaming industry with audio by stubbornly sticking with their own 4.1 Channel EAX system, rather than adopting long standing surround sound formats commonly in use for home theaters. They naively assumed that few people would play games on their multi thousand dollar home theater systems. And as such console games had yet another advantage (other than ease of use and much lower cost) over computer games. I still remember all the hassles I went through to get games to properly display at 16:9 aspect ratios and getting an early Dolby Digital Live encoder transcode EAX to Dolby Digital on the fly so that I could have surround sound work through the digital inputs of my home theater receiver.
-Ed