What I don't understand is why Dolby Atmos is not used much more for games. Xbox One and PC support it but only very few titles use it. PS4 and PS5 don't support it all for games (only for video content), despite all Sony's bragging about their dedication to PS5 audio. Dolby Atmos seems perfect for games, for developers because it effortlessly maps audio directly to any 3D position in space, and for users because it scales all the way from headphones to soundbars to full 7.4.2 setups.
I was royally pissed off to learn PS5 would not natively support Dolby Atmos, I have a full 7.4.1 home-theater setup with height speakers and movies and Dolby Atmos demo's sound absolutely awesome. Yet if I play games the best I can get is 7.1 which is nice, but the height speakers go totally unused. It's probably related to licensing costs, but it is extremely disappointing having waited for the PS5 for so long and not seeing any kind of upgrade to the audio.
As far as I know Dolby Atmos can be seamlessly mapped onto to 5.1 or 7.1, so from the developer perspective there should be no effort/cost to provide Dolby Atmos audio. I might be wrong about this but I assume the licensing cost would be for the playback device and not for the 'right' to bundle an Atmos audio track with your game?
But primarily via the analog audio outputs on the back of a PC motherboard.
If you've hooked your PC into your surround sound setup via HDMI, optical cable, or other single connection method, it is unlikely to work.
If your surround sound amp supports per-channel analog in and your PC has 5.1 or 7.1 out support, you can use 4 or 6 (5.1 / 7.1) 1/8" stereo to RCA cables to connect your PC to your surround sound system. Depending on your TV / surround sound system, you may need to mess with delay settings to get the audio to sync with the video. Having your TV and surround sound system set to "game mode" may help. Hooking your PC output directly to the TV may also help.
My understanding is using DTS, Dolby Atmos, etc to encode / decode surround sound requires paying licensing fees. These aren't paid by Microsoft as a part of Windows, by the gaming framework companies for their Windows games, etc.
I suspect Microsoft and Sony handle the fees for their consoles, but I do not know for certain. It's possible they require game makers to pay them.
Edited for clarity.
I remember a lot of effort went into making sounds feel right in the NFS games. Including mixing engine sounds recorded from different parts of the car to match the camera's position relative to the car. We even had an article about the process of recording those sounds:
http://www.speedhunters.com/2015/10/recording-the-sounds-of-...
Speaking to the sound engineers was one of those wonderful glimpses into a whole other field that I love about working in games.
I can verify that at least parts of this list is correct. I remember getting jump scares when hearing monsters behind me in Dead Space 2, F.E.A.R., and as I mentioned earlier Left 4 Dead 2.
One thing I will say is that settings screens usually do a poor job at showing whether they're using surround sound. Games often just query the system for audio setup and show little more than whether you've selected headphones or speakers.
edit: since I thought it strange that your experience was so different from mine and that Fortnite wouldn't support it, I googled it and found an article from 2019 about how Fortnite, originally built for 5.1 surround sinds sound, now supports 7.1. My guess is there's some configuration issue with your PC.