On the Neuman the microphones are embedded inside an ear appendage on the head its self.

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There is no comparison when you hear Binaural sound compared with stereo. Binaural is simply out of this world. Left and right sound switches as the listener rotates their head as in the real world. Whereas stereo is a fixed format.

For now headphones need to be deployed to play back the sound, but research is underway and companies are developing ways to replicate binaural with external speakers.