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LivingMetal said:
kitler53 said:
seems like there are answers to be found here:
http://www.neogaf.com/forum/showthread.php?t=942898

Thanks.  But it still doesn't answer my question in regards to the games.  Blu-Ray playback, the PS4 supports lossless audio formats.  But are the games encoded with losses audio?  I could make that assumption, but I want to be sure.  Thanks again.

This really depends on a lot of things. Most of the time a games sound effects will be generated randomly and those sounds are almost always lossless. The in game music and voice acting that comes from the Blu-Ray disc will usually be lossless as well, but not always.

Downloaded games may or may not have the lossless audio. If there is a size difference between the downloaded version and the size on disc than the downloaded version will likely be limited to Dolby 5.1. However, if the game is bit-for-bit the same size downloaded and on disc, then the downloaded one will have lossless audio.

If the game you are playing is a small indie game you will almost never have lossless audio since most indie games don't have the capital for high end audio mastering. 

So the answer is all of the following, Yes, No, Sometimes, and Maybe.