With the increasing interest in virtual reality games and the newly available options of binaural simulated sound (3D audio), the effects of spatialized audio on players has become of interest. This study focuses on the effect that 3D audio has on players' levels of immersion and presence through the use of questionnaires, phasic electrodermal activity (EDA) and heart rate variability (HRV). In this study participants played a game exposing them to different horrific auditory stimuli either rendered with stereo or 3D audio. Questionnaires showed no significant differences in level of immersion or presence, but a significant difference was observed for EDA responses. This could suggest that 3D audio induces a higher level of immersion or presence on a subconscious level compared to stereo, though a higher sound intensity was observed for 3D audio which could also explain the results.