Is there any equipment that can do this?

I like to listen to live Jazz but my issue applies to all recorded live music. Here's the problem. With any 2 channel system, the audiance is heard as though they were on the same stage as the musicians. Ideally, the front soundstage should present the performers and the audience should be heard around and behind the listener to simulate the sense of being at a live concert. I realize that this would be all but impossible to reproduce in a 2 channel system but is it even possible with multi channel systems? If a high end quality system can present a realistic soundstage with precise imaging, why can't today's technology place the audience in its proper location to deliver a more realistic live performance? Or can it?

J.Chip