Surround Sound Broken (5.1 tested extensively)
5.1 surround (and im guessing 7.1 but I cannot test this) is completely broken. I opened a tech support request about this thinking it was only me. However upon further investigation it is the game.
Some symptoms of this issue are, sound blocks only playing out of one speaker at full volume no matter your distance or orientation relative to the block. Sound from behind you being played in the front speakers. Very quiet environmental sounds being played in the rear speakers. Extremely loud sounds from some blocks such as the airtight hanger doors. Engine sounds being played from the incorrect speakers regardless of position relative to them.
I have tried multiple sound cards and 1 external receiver testing this to be absolutely sure. Verified the surround sound is working correctly by using different games testing positional sounds and volumes, specifically Minecraft and The Witcher 3: Wild Hunt.
I tested the Creative Soundblaster Z:
"no encoder", Minecraft 5.1 surround working, The Witcher 5.1 surround working, Space Engineers broken.
"Dolby Digital Live", Both games working, Space Engineers broken.
"DTS Connect" and "DTS Neo:PC" modes, both games working, Space Engineers broken.
Next I tried an older Creative X-Fi Xtremegamer. Same results as the Soundblaster Z.
Next I tried onboard audio (Crystal Sound 2) which is a RealTek audio processor my on my motherboard. Same results as above (but sounds like trash in comparison to the Creative cards :P).
For the final test I connected the Soundblaster Z to a Pioneer receiver by the optical output and have exactly the same results.
I have also reinstalled Windows 10 and tried the Soundblaster Z again and still no change. I have made absolutely sure the sound drivers are up to date and even tried one version older to be sure.
When I contacted tech support about this, they assured me that it has been forwarded to the developers to look at but I have heard nothing.
This is easily testable in a creative world build noise making machines and turn your character around. The sound block is a bad one because of that I have to disable 5.1 whenever i want to play the game.
Please note that I am speaking of actual 6 channel surround sound. When I ask people, they assume I am talking about stereo headphones for some reason and claim it works.