Binaural Recording is a method of recording sound using two microphones usually placed on a dummy head to mimic the ears of a human.
When these recordings are played back using headphones, it sounds quite realistic.
Destin on "Smarter Every Day" recently made a first person perspective binaural recording of the Machu Picchu ruins in Peru by strapping a Go-Pro cam to his head and putting microphones in his ear.
Radiohead used this technique mixed with traditional recording techniques for a few songs on "In rainbows"
Below i've linked some music that was recorded using this method that you can listen to on Spotify.
Ottmar Liebert's "up close" is a neat acoustic guitar album recorded binaurally.
These tracks off of Pear jam's album "binaural" use the method. You'd think if the album was called binaural they'd use it for every song, but oh well.
For those interested in learning a bit more, the wikipedia page on the subject is pretty good.
I think it'd be neat if someone made a first person game with audio that was recorded this way.