Yamaha YSP-500: Even Smaller Sound Projector
Japan-only for now, the latest Yahama Digital Sound Projector, the YSP-500, puts 18 carefully positioned speakers in a box 24-inches wide. Previous sound projectors from Yamaha, which do an able job of emulating surround sound out of a single box, have been around 40-inches.
It's $650 in Japan. North American release may happen, but it probably depends on the response Yamaha has had to the bigger models. I haven't had one in my home for long-term use, but I really like the concept, as I'm starting to value perfect 3D placement of sound in home theater less than ease of installation.
yamaha ysp-500: virtual surround gets downsized [Technabob]

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I've never gotten into the whole surround sound thing – with a combined living room/workplace that would mean too much wires to get tangled in, but this looks nifty. I wonder what could be done if the concept was extended to a front and rear unit. Even with a separate subwoofer that would still be much easier to place than a 5.1 setup.