Using an M:N variable matrix, M audio input signals, each associated with a direction, are translated to N audio output signals, each associated with a direction, wherein N is larger than M, M is two or more and N is a positive integer equal to three or more. The variable matrix is controlled in response to measures of: (1) the relative levels of the input signals, and (2) the cross-correlation of the input signals so that a soundfield generated by the output signals has a compact sound image in the nominal ongoing primary direction of the input signals when the input signals are highly correlated, the image spreading from compact to broad as the correlation decreases and progressively splitting into multiple compact sound images, each in a direction associated with an input signal, as the correlation continues to decrease to highly uncorrelated.