As described in Stereophile some years back (footnote 1), Direct Stream Digital is a new way of digital-encoding an analog signal, and was developed by Sony's engineers in order to archive Sony Music's priceless catalog of recordings. While DSD is fundamentally different from the conventional Linear PCM encoding used on CD and DVD-Audio, there is a connection at the A/D level, in that both involve oversampling delta-sigma converters (footnote 2).
The most straightforward way of encoding an analog signal as a Pulse-Code-Modulated (PCM) digital…