For those not familiar with the magic of binaural recording, it is actually a fairly old technique for creating life-like three-dimensional stereo sound. The heart of the technique is dummy head recording, in which sound is captured with two mics embedded in the “ears” of a head-shaped form. The replication of human ears, the “head shadow” created by the dummy head, and the distance between the microphones helps simulate sound as it is experienced in real life.
The Verge demonstrates binaural audio in an incredible video, which was recorded with a 3Dio binaural microphone–headphones are strongly recommended. The Verge has more on binaural recording in their companion article.