John Marks

Henry David Thoreau once wrote that "The eye is the first circle; the horizon it forms is the second." A profound observation, indeed: The horizon exists only in being perceived. Kind of like music, in fact.

As part of this issue's coverage of the recent Consumer Electronics Show (see Sidebar), I report on my dissatisfaction with almost all the surround-sound demonstrations I experienced in Las Vegas. As a music-lover, the last thing I want is to have trumpets and drums attacking me from behind, yet almost without exception, that is what record producers seem to feel is an essential part of the DVD-Audio and SACD experiences.

"J-10, tweakoman," began the e-mail from one of Stereophile's Web mavens and a contributor to "Industry Update," the estimable Barry Willis, "hockey pucks are the cure for what ails you."

Please bear with us a moment here&mdash;we know most audiophiles react to MP3-related news with a serious case of ringing ears, but tracing where the lo-fi market is currently headed can be instructive for understanding the distant hi-fi future. And if the new technology previewed last week at <A HREF="http://www.qualcomm.com/brew/">Qualcomm's BREW</A> conference in San Diego is any indication, some parts of your audio future may, in fact, be wireless.

<A HREF="http://www.cirrus.com"&gt; Cirrus Logic</A> has initiated cutbacks in its workforce and other cost-reduction moves that are expected to save as much as $12 million annually. The Austin, TX&ndash;based semiconductor company stated May 15 that the measures are part of a general restructuring of its business model, in which its magnetic storage chip business will be de-emphasized in favor of its semiconductor business. Cirrus is the parent company of Crystal Semiconductor, maker of many high-performance digital audio chips.

Many small classical record labels are facing an uncertain future in the wake of a decision by <A HREF="http://www.towerrecords.com">Tower Records</A> to put three classical distributors on buying hold. News of the decision, and discussions about its ramifications, have circulated on the Internet after an internal memo was leaked on May 1. The memo from company headquarters ordered store buyers at all 113 Tower stores in the US not to purchase from Allegro, Harmonia Mundi, and Qualiton, until receiving further notice. The three distributors represent dozens of small independent jazz and classical recording labels.

It's been a roller coaster ride for satellite radio upstarts <A HREF="http://www.siriusradio.com">Sirius Radio</A> and <A HREF="http://www.xmradio.com">XM Radio</A> this past week as both companies fortunes shifted yet again. In a classic billion-dollar consumer electronics gamble, Sirius and XM are betting that they can reach critical mass by selling enough specially equiped digital radio receivers through car manufacturers while simultaneously signing up enough subscribers to reach profitability.