DAC upgrade or Amplifier

Soundstage is definitely source, but that means not just the DAC, but the digital feed to the DAC, and something you are probably not considering; the preamp. 

The jitter of this feed is critical to achieving good 3-D imaging, in fact more important than the DAC.  Lower the jitter, the more 3-D it will be, the tighter the focus will be.  Both DAC and source feed are important however.  A good DAC will insure good dynamics and a liquid midrange, as well as crisp airy highs.

A poor active preamp can easily kill any chance at 3-D imaging by introducing distortion and compression. I have not heard any preamp less than about $10K that can do a decent job.  Passive preamps, particularly transformer-based, or direct from DAC to amps is a less expensive option.  If you are doing computer audio, using a good playback engine like Amarra, the S/W volume control will add very little distortion compared to a typical preamp.

If you are using an inferior CD player or a cheap computer audio solution like direct from a laptop, this can easily cause a jittery source stream.  For a CD player, there are reclockers that can resample the data and reduce jitter significantly.  For computer audio, there are USB and Network converters that reduce jitter or a good server, like the Antipodes or Aurender.

I would recommend to start with the source and source cabling and reduce the jitter of these first and then look to the preamp and DAC for upgrades.  Don't rely on the DAC to reduce jitter effectively.  99% of them don't.

I've been in the business 16 years and upgraded my own personal system for 30 years.  I have modded a LOT of DACs as well in the past and exhibited at shows for 15 years.  I've had a lot of opportunity to hear the effects that various components have on a system and determined where synergy even makes sense.

Steve N.

Empirical Audio

Another option for you if you are interested in doing computer audio, but want to ease into it is the Sony HAP-1EX.  Fairly low jitter and a decent DAC, all for an affordable price.  You can even drive your amps directly, so you save on the preamp and DAC.

I have heard $100K systems at shows driven by the HAP-1EX, and they sounded quite good.

Empirical Audio

Phil - Each volume control technology has its deficiencies, so all of them are a compromise of some sort.  The best scenario is probably to do some reduction in volume using a DAC digital control, gain control and then additional drop using S/W volume control. You can do about 10dB with a good volume like Amarra has without any SQ impact.   If you can find a DAC with several gain settings, but no volume control, this is probably best.  Set it as a lower setting and then reduce more with S/W volume on a computer.

Like almost all design, its not so much the technology as the implementation that makes a good performing circuit.  If the digital volume control on the DAC is implemented well, you will get excellent results.

HAP-Z1es is correct.

Steve N.

Empirical Audio