WOW, it works incredibly well and sounds much better than commercial games!
Each characters have a sound and a loudness, as in light color and power. It also have a normal which define the direction of the sound it emit, but it's 180 degree feathered.
Each material have an acoustic absorption value, and of course, the reminder is reflected. Like dark colors absorbs more and reflect less. No diffuse tho.
For each audio channel (speakers)...
get the global position in the scene, and, the normal of each one which define the direction it is listening.
shot random rays out into the scene, and for each rays...
a. if nothing hit, do next.
b. cast ray to each audible source
c. if it hit, get the sound * constant/(dist*dist) * (1-material_absorb)
The above produces stunning results. I have modified it to do more depth like a path tracer, and I've included real time propagation of sound, then wow, it is absolutely amazing. When you move the character, the sound is so 3D, it feels so real, you know exactly where the monsters are!
Does this already exist? Or did I simply made a money maker thing public domain? Because none of the commercial games we play have real 3D sound.