Spatial Audio
The expression has slightly different meanings depending on the format: The listener is enveloped by sound and can easily and accurately localize it. In VR, spatial audio responds to head position and rotation, it matches the acoustics of the space, and perceptually it is indistinguishable from the real world.
A definition by Anastasia Devana given in 2022: “Spatial audio convinces you that the sounds are coming from the real world around you, and not from your headphones or speakers, and continuously adapts to the changes in the world and your movement through it.”