A method for processing an audio signal, comprising: at a computing device having one or more processors, at least two speakers, memory, and a plurality of program modules stored in the memory and to be executed by the one or more processors: receiving a digital stereo audio input signal; extracting localization cues from the digital stereo audio input signal; generating a left-side component and a right-side component from the digital stereo audio input signal, at least partially, in accordance with the localization cues; performing crosstalk cancellation to the left-side component and the right-side component, respectively, to obtain a crosstalk-cancelled left-side component and a crosstalk-cancelled right-side component; and generating a digital stereo audio output signal including the crosstalk-cancelled left-side component and the crosstalk-cancelled right-side component characterized in that the step of generating a left-side component and a right-side component from the digital stereo audio input signal further includes: extracting a middle component, an initial left-side component (S L 311) and an initial right-side component from (S R 315) the digital stereo audio input signal; panning the middle component into the initial left-side component (S L 311) and the initial right-side component (S R 315), respectively, in accordance with the localization cues to obtain an intermediate left-side component (S L 331) and an intermediate right-side component (S R 335); and upmixing a first copy of the middle component with the intermediate left-side component (S L 331) and a second copy of the middle component with the intermediate right-side component (S R 335), respectively, to obtain the left-side component and the right-side component, wherein there is a predefined time interval between the first and second copies of the middle component. at a computing device having one or more processors, at least two speakers, memory, and a plurality of program modules stored in the memory and to be executed by the one or more processors: receiving a digital stereo audio input signal; extracting localization cues from the digital stereo audio input signal; generating a left-side component and a right-side component from the digital stereo audio input signal, at least partially, in accordance with the localization cues; performing crosstalk cancellation to the left-side component and the right-side component, respectively, to obtain a crosstalk-cancelled left-side component and a crosstalk-cancelled right-side component; and generating a digital stereo audio output signal including the crosstalk-cancelled left-side component and the crosstalk-cancelled right-side component receiving a digital stereo audio input signal; extracting localization cues from the digital stereo audio input signal; generating a left-side component and a right-side component from the digital stereo audio input signal, at least partially, in accordance with the localization cues; performing crosstalk cancellation to the left-side component and the right-side component, respectively, to obtain a crosstalk-cancelled left-side component and a crosstalk-cancelled right-side component; and generating a digital stereo audio output signal including the crosstalk-cancelled left-side component and the crosstalk-cancelled right-side component characterized in that the step of generating a left-side component and a right-side component from the digital stereo audio input signal further includes: extracting a middle component, an initial left-side component (S L 311) and an initial right-side component from (S R 315) the digital stereo audio input signal; panning the middle component into the initial left-side component (S L 311) and the initial right-side component (S R 315), respectively, in accordance with the localization cues to obtain an intermediate left-side component (S L 331) and an intermediate right-side component (S R 335); and upmixing a first copy of the middle component with the intermediate left-side component (S L 331) and a second copy of the middle component with the intermediate right-side component (S R 335), respectively, to obtain the left-side component and the right-side component, wherein there is a predefined time interval between the first and second copies of the middle component. extracting a middle component, an initial left-side component (S L 311) and an initial right-side component from (S R 315) the digital stereo audio input signal; panning the middle component into the initial left-side component (S L 311) and the initial right-side component (S R 315), respectively, in accordance with the localization cues to obtain an intermediate left-side component (S L 331) and an intermediate right-side component (S R 335); and upmixing a first copy of the middle component with the intermediate left-side component (S L 331) and a second copy of the middle component with the intermediate right-side component (S R 335), respectively, to obtain the left-side component and the right-side component, wherein there is a predefined time interval between the first and second copies of the middle component.