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The most important issue facing the high-end audio crowd at this Show is the looming battle for high-resolution audio formats. DVD-Audio and SACD posturing was everywhere, with SACD probably displayed the most. But it was a relief to see that manufacturers were starting to consider putting both SACD and DVD-Audio processing in a single box, thus making the choice for consumers much easier. This means that the makers of disc players are not forced to choose sides, and are able to please everyone. It allows consumers, as well, to make a single-player choice and be covered for the coming armegeddon. But it will put record labels in a tough spot: which format will they support for their releases---SACD, DVD-Audio, or, somehow, both? We'll keep you informed.

The last day at CES is low-key. Displays at the Las Vegas Convention center are already being broken down by mid-day, and many attendees have already left.

The criticisms are out there. They're in the audio newsgroups on the Internet, even in this magazine's "Letters" section. For years, Cassandras have proclaimed that <I>Stereophile</I> has sold out, gone down the tubes, become a mere lapdog for the big-league manufacturers whose components almost never get panned.

J<B>anuary 9, 3pm</B><BR>Some fascinating prototypes were on display at the Madrigal breakfast at Bally's this morning---and we can't tell you about them. But when the Cone of Silence is lifted, you can bet we'll spill the beans, particularly in view of Madrigal's confidence that there will be a future market for very-high-quality surround-sound music reproduction. In the meantime, we <I>are</I> able to report that the new Proceed DVD transport has enough upgradeability options to allow for just about any future digital format: DVD-Audio, SACD, CD, DVD-Video, etc. The transport will also allow for easy upgrading to future interface schemes such as IEEE 1394. And, unlike many other DVD-Video transports, the Proceed should be able to play CD-R discs. For two-channel fans, the Mark Levinson No.32 Reference preamplifier is in production and will be available next month. Price of the two-chassis, dual-mono unit, without phono stage, will be in the region of $15,000. Madrigal is already back-ordered.

Ah, it's good to be home again. We have finally arrived at the Alexis Park complex, the enclave of specialty audio. It's a much more civilized venue than the Convention Center, but, here as there, new products prevail. Only drawback this year: Someone has apparently rerouted the airplane take-offs from nearby McCarran airport to directly overhead, making it tough to continue a conversation or demo for more than 5 minutes.

Your dauntless reporters---Tom Norton, Steven Stone, Michael Fremer, Bob Deutsch, Larry Greenhill, Jon Iverson, and Barry Willis---have shown up on schedule for Philips Electronics' 1999 kickoff press conference at the Desert Inn's Grand Ballroom II, attended by a hundred or so other journalists.

If one were to judge by new high-end audio-product intros at this year's CES, the industry appears to be hopping. So far we're only halfway through the Alexis Park (the home of most high-end audio exhibitors at the Show), but our bags are already overstuffed with brochures. Not surprisingly, a lot of the two-channel manufacturers are branching out to the multichannel market.