The tech giant promises the new hardware is the "most powerful, realistic music experience for listeners and a new medium for artists to create".
Sony Electronics (North America) president and COO, Mike Fasulo said: "360 Reality Audio is a proof point that innovation never stops.
"The confluence of deep technical roots, tireless artists and forward-thinking hardware and semiconductor partners illustrates the tremendous draw of this radical new way to make music even more moving.
"Together with valued industry partners, Sony has architected the most powerful, realistic music experience for listeners and a new medium for artists to create."
It works by making the music sound like a live performance with the instruments and vocals coming out at different locations.
Upon its launch 1,000 songs will be available in 360 Reality Audio.
Songs by the likes of Pharrell Williams, Bob Dylan, Billy Joel will be available, plus live performances from the likes of Charli XCX and Kodaline.
The firm has teamed up with record labels and promoters, Universal, Warner, and Live Nation, to create content.
The sound will be available via Amazon Music HD, Deezer, TIDAL, and nugs.net.