A DAC That Converts PCM To DSD 128

Yes and No

The Sony uses a sigma delta stream that uses a DSD-type signal during the conversion process anyway.

The only option it does is to convert the signal to DSD and feeding it to the sigma delta DAC or let it remain in PCM before sending to said DAC.

The only DAC that I know of that has two DAC chips inside is the AMR DP777 which has a traditional R2R chip for 16/44 PCM and a sigma delta chip for hires (tho the DAC does not support DSD signals today, the sigma delta chip it uses can in theory support that).

And the audible benefit of this conversion is, or purports to be . . . .?

Neal

The amazing Lumin Music Streamer/Dac does exactly this and sounds amazing, We sold one to a customer who was using a DCS Puccini and the Lumin bested it in terms of sound quality, and of course a cd player vs an ipad controlled streamer no contest.

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Neal, below is an excerpt of a review from What Hi-Fi?

Part of the Sony’s internal wizardry is its DSD Remastering engine, which converts all music files to DSD, supposedly improving sound quality in the process.

Thanks to the latest software update, you have the option of turning it on or off, so during testing we experimented to see if we could hear any differences.

Turned off, music seems to have a slightly edgier, more attacking character. Switched on, the Sony goes for a fuller, slightly smoother sound with greater body.

You lose a little in terms of attack, but we preferred the balance with it switched on.

Even compressed tracks and internet radio stations sound relatively luxurious through the HAP-Z1ES.

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I recently built a quiet PC and for kicks decided to run JRiver on it.

I enabled DSD2x up sampling of all media (a mix of CD lossless quality, HD material as well as DSD 1x) and was pretty amazed at how much better they sound than sending it natively to my own DAC (which also purports to convert all incoming signals to DSD2x)