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"We put music in the souls of our amplifiers. Every amplifier, every tube, every transformer has music in its soul."

Not to be cynical, but I've heard, over the years, countless variations on that sentiment. Not to be naïve, but it rang with somewhat-greater-than-usual sincerity when given voice by 45-year-old Richard Wugang—founder, with his late father, of Virginia-based Sophia Electric, Inc.

Editor's Introduction: In 2013, lossy compression is everywhere—without lossy codecs like MP3, Dolby Digital, DTS, A2DP, AAC, apt-X, and Ogg Vorbis, there would be no Web audio services like Spotify or Pandora, no multichannel soundtracks on DVD, no Bluetooth audio, no DAB and HDradio, no Sirius/XM, and no iTunes, to quote the commercial successes and no Napster, MiniDisc, or DCC, to quote the failures. Despite their potential for damage to the music, the convenience and sometimes drastic reduction in audio file size have made lossy codecs ubiquitous in the 21st century. Stereophile covered the development of lossy compression; following is an article from more than two decades ago warning of the sonic dangers.—Editor

In more than 37 years of working at audio magazines, I have never reviewed an Electrocompaniet product. With this review of the company's ECD 2 digital/analog processor, which costs a dollar short of $3100, that streak of inattention has come to an end.

When I reviewed Simaudio's Moon Evolution 880M monoblock amplifier for the June 2013 issue, I communicated via phone and e-mail with the company's VP of marketing, Lionel Goodfield. When the topic of hearing the 880Ms at their best came up, I could almost imagine him shrugging as he said, "Just use it with the most transparent, revealing preamp you can find." Not surprisingly, he then went on to say that Simaudio's own Moon Evolution 850P would serve nicely in that role. My cynical side might normally have discounted any such suggestion from a marketing man, but I'd been hearing the same sort of thing from other sources. And, as it happened, there was an 850P at Stereophile World Headquarters . . .

For the high-performance audio market, it makes a lot of sense to process digital audio data via sophisticated software running on a dedicated personal computer. Which brings us to Parasound's Halo CD 1 CD player ($4500). Some might find it questionable to release today, as one's first digital-disc player, a machine that plays only "Red Book" CDs, rather than a universal or near-universal (non–Blu-ray) player.

It's time to celebrate another memorable year in high-end audio. Each December since 1992, Stereophile has named a few special components its Products of the Year. These are components that not only define the present audio landscape, but that we hope will someday be seen as classics—things you'll want to pass on to future generations of audiophiles and music lovers.

And the winners are . . .