I don't know about Razer's implementation but virtual surround sound used on stereo headphones can be quite excellent. (Dolby Headphone is superb)
Amnesia on my Sennheiser's with Dolby Headphone was far more immersive and terrifying than when I initially started playing it on my 5.1 speakers.
Stay far away from any headset that attempts to create a surround sound effect by cramming 5 drivers(and a subwoofer mechanism) into a headset, I've tried it and it sounds like shit compared to decent stereo headphones with virtual surround.
Try that. It should give you an idea, but it's not going to be the same as how good it would sound if you were using a device/sound card with Dolby Headphone enabled.
With that clip on my HD595s I can clearly identify the direction of each sound with easy distinguishing between side, front and rear.
edit: I'm going to guess that the Razer method will sound respectable, but as it's all done through software rather than hardware as well (Dolby Headphone is typically a sound card feature) it's probably not going to be as good. ASUS Xonar sound cards are quite cheap and they all support DH if I remember right, I have a DX myself.
To use Dolby Headphone you just set your computer, games and sound card to output 5.1 or 7.1 sound and Dolby Headphone will do the rest and make your stereo headphones sound like you're surrounded by speakers.
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