I've got the HD 202 and XP500 and I haven't used the XP500s since getting the HD 202s however I'm 80% Music and 20% games. The surround sound in the XP500 was pretty cool for playing COD etc, but for quality music you want the HD 202s hands down. Also felt like a retard wearing the XP500 out of the house. The HD 202s also block outside noise very well and contain their own sound well so you don't piss off everyone on the bus. I don't think I have tried the HD 202s for games but I imagine the would be explosive. So my answer is Yes, The $80 NZD Sennheiser HD 202 have better sound quality than the $300 NZD Turtle Beach XP500.