It doesn't seem to work well on recorded video (EDIT: It has more to do with the fact that it's a lot harder to determine the virtual position if the sounds are the same) and the depth is not as big as you'd want to, but it still is definitely worth turning on, you can hear an uncloaking spy's location very well, especially compared to plain stereo output. However, it's still not as good as a well set up surround sound setup while sitting in the sweet spot, though more enveloping than a badly set up and/or cheep surround sound setup or an average pair of surround sound headphones. Nevertheless, identifying where a spy uncloaked would be easier with said average pair since instead of analysing the sound, you'd analyse from which speaker the uncloaking sound is coming from. Of course, there are advantages to Dolby Headphone over a pair of surround sound headphones, namely price and sound quality. Therefore, if you have the option to turn on Dolby Headphone, do so if you prefer sound quality over the surround sound effect it self or are budget conscious.