The answer is surprisingly simple. DSD is a patented noise-shaped version of Delta-Sigma modulation, a one-bit sampling process already in use by most multibit-sampling A/D converters. Sony and Philips have simply removed the intermediate step of turning the raw samples into numbers. Now, you know that digital recordings with smaller sample sizes usually have significantly more noise than those with larger sample sizes, but Sony and Philips have taken care of that with fifth-order noise shaping. I’ll probably discuss noise shaping another day.
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