Realistic aural rendering of events in mediated environments is becoming an increasingly important aspect in many multi-modal applications. In a between-group experiment with 45 participants, it was studied how ratings of presence (a sense of being in the mediated environment), emotional reactions to the auditory environment, and emotion recognition vary as a function of number of audio channels (mono, stereo, and six-channel reproduction). The results showed that stereo and six-channel reproduction resulted in significantly stronger changes in emotional reactions than the mono condition. Further, six-channel reproduction received the highest ratings of presence and emotional realism. Taken together, the result suggested that both emotional reactions and ratings of presence increase with spatialized sound. Further, emotional reactions and presence were highly correlated. The results are discussed in relation to theories of mediated presence and emotional reactions in an attempt to further delineate the concept of presence.