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This is roughly the living room set-up we are working with, there’s no wall behind us, and we don’t want to do speaker stands. Does it make sense to ceiling-mount 2 ERA 300s where the red is? I want feedback from people with a similar set-up, curious on how the surround sound wokrs when paired with an Arc Ultra and a Sub.

I can’t help with your question as my Eras are music-only wall-mounted units, but I’m curious what ceiling mounts you plan to use? Presumably you’ll then mount them in the inverted orientation? 


These ones, and I would do inverted orientation: https://a.co/d/2wHboOZ


No idea but I wonder how they would compare to an Amp and either the 6 or 8 inch in-ceiling speakers.


No idea but I wonder how they would compare to an Amp and either the 6 or 8 inch in-ceiling speakers.

Amp powered passive speakers won’t support separated Atmos rear channels, but I really doubt that ceiling mounted Era300 would so that quite well. I definitely would prefer floor stands, but as OP said it’s no option for him.

Imo both options, ceiling mounted Era300 and passive in ceiling speakers are difficult to test. 
So I think I would go with a pair in ceiling speakers. 
I used Atmos for some time with non dedicated Atmos rear speakers, and nevertheless it sounded much better than DD5.1.