What's the Difference Between PCM and DSD?

High-resolution PCM (DVD-Audio, HD DVD and Blu-ray Disc) and DSD (SACD) may still technically differ at high frequencies. A reconstruction filter is typically used in PCM decoding systems, much the same way that bandwidth-limiting filters are normally used in PCM encoding systems. Any error or unwanted artifact introduced by such filters will typically affect the end-result. A claimed advantage of DSD is that product designers commonly choose to have no filtering, or modest filtering. Instead DSD leads to constant high levels of noise at these frequencies. The dynamic range of DSD decreases quickly at frequencies over 20 kHz due to the use of strong noise shaping techniques which push the noise out of the audio band resulting in a rising noise floor just above 20 kHz. The dynamic range of PCM, on the other hand, is the same at all frequencies. However, almost all present-day DAC chips employ some kind of sigma-delta conversion of PCM files that results in the same noise spectrum as DSD signals. All SACD players employ an optional low-pass filter set at 50 kHz for compatibility and safety reasons, suitable for situations where amplifiers or loudspeakers cannot deliver an undistorted output if noise above 50 kHz is present in the signal.

https://en.wikipedia.org/wiki/Direct_Stream_Digital

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