It's a great time in game audio these days. After steeping in the current console generation, several examples of best practices in audio implementation have been exposed through articles, exposes, and video examples. In an attempt to overview some of the forward thinking front runnings in the burgeoning field of Technical Sound Design, I've been pulling together examples of inspirational audio in games as a way to highlight innovative techniques and the process behind them.
Prototype - Radical Entertainment
-Scalable Crowdsourcing

While you won't hear all of the stories that the city has to tell, you will be able to hear the changing voice of the city during your progression from introspective lost soul to amped up superman thanks to the attention to detail by Radical's Sound Department.
"Some aspects of the interface are set by the sound designer in real time, such as overall volume, cross-fade curves and max volumes of any individual streams. A variety of parameters are also exposed to allow tuning of roll-off times, smoothing factors, channel leaks, etc. to allow for subtle "massaging" of the resulting sound."
"Other parameters in the patch are controlled at runtime by the audio code such as positional weighting of the sounds in the quadraphonic matrix and cross-fade amounts between zones. The audio code takes input from the AI and other game systems to determine how many objects are in a given quadrant of a sphere around the listener and calculate what the volume level should be per channel."
Article: Dynamic Game Audio Ambience
Article: The Sounds of Prototype
Dynamic Ambient in Prototype
Article: Aural Fixation Interactive Ambience
Bonus: Prototype Sound Design