I've recently come across this YouTube video that shows a PCM stream being played back via the 1-bit internal "PC Speaker", and after hours of googling I've come to think this is done via Sigma-Delta modulation.

So far, what I gather from the process is that it takes the original digital signal, oversamples and approximates it via PWM while applying a low-pass filter to the 1-bit output. I'm not quite sure if this is right.

Not having a background in DSP, I'm wondering:
How could this process be implemented in software?