Modern musical performance is undergoing a transformation through the application of immersive audio technologies and virtual environments, providing an opportunity to experience modern musical performance that can be interactive, spatial and digitally mediated. This paper analyzes the effect of spatial audio, virtual reality, and networked performance platforms on the creation and reception of music in the present day. The study uses a systematic literature review to examine the newest trends in immersive audio rendering, virtual performance of instruments and collaborative music settings. The results show that spatial audio technologies make listening more real and involve the listener in the sphere, whereas virtual reality platforms make participation in the experience and performance possible all around the world. Moreover, the development of the musical metaverse creates new opportunities for digital concerts, collaborative creativity and interactivity with the audience. In spite of these developments, latency, technical infrastructure, and accessibility are challenges that are still very challenging. All in all, immersive audio and virtual space are transforming musical performance practice and providing new possibilities for artistic expression in the digital age.
