Why do you need to upgrade? Not satisfied with your current set-up? With a MC vs MM debate you've opened up a whole can of worms. This is as polarizing as the tube vs transistor debate! Since this is a matter of taste and system, then the best way to understand the differences is to try the alternatives. But generally speaking, MMs are more relaxing to listen to, mellower (kind of like tubes) and easier on the electronics, as they don't require too much gain (though now Grado has released low-output MMs to further confuse the issue). They are also generally cheaper than MCs, though MCs are generally more detailed and focused. But of course, this is a generalisation, as someone with a bright MC could find a mellow MC to improve the sound of his system, just as someone with a mellow MM could brighten up his system by buying a bright MM.
If you closed your eyes and threw a dart at a board with little stickers on which were written various MMs or MCs and hit an MC sticker, you could generally expect more detail, more focus, better "microdynamic shading", meaning the small-scale dynamics, like a more-intensely plucked guitar string and such, but there would also be a slight (or major)emphasis towards the high frequencies. If your dart hit MM, chances are the sound of the piece would favour the bass more, perhaps be better at large-scale dynamics, and in my experience at least, be better at conveying the piece "as a whole" and at preserving the rhythmic interplay (I don't know why). Bear in mind that there are exceptions to all these rules of thumb. MCs are quite energetic in comparison with most MMs as well, and so require higher-quality arms. But again, a higher-quality arm, once bought, will make the most of MMs as well. And a given MM will extract more detail than a certain MC, and there are MCs which will be better than given MMs at conveying rhythm. Then there is the issue of matching a cartridge to an arm to achieve the correct resonance.
Confusing enough? I am interested in reading other opinions. The best thing is to listen to some examples of each - usually via friends - and decide which ones ring your bell. For myself, I went through the usual beginning with a high-output MM, then discovered MCs which were superior in some ways and turned my back on MMs, and now I find myself swinging back to MMs. Good examples of each in your budget are the Shure V15 MM (very neutral), various Clearaudio MMs (which kind of sound like MCs), the Dynavector 10X5 high-output MC (a partier), the Denon Dl-103 (low-output, however, be certain you have an MC stage), various wooden-bodied Grados (very musical).
So, get out there and listen!
If you closed your eyes and threw a dart at a board with little stickers on which were written various MMs or MCs and hit an MC sticker, you could generally expect more detail, more focus, better "microdynamic shading", meaning the small-scale dynamics, like a more-intensely plucked guitar string and such, but there would also be a slight (or major)emphasis towards the high frequencies. If your dart hit MM, chances are the sound of the piece would favour the bass more, perhaps be better at large-scale dynamics, and in my experience at least, be better at conveying the piece "as a whole" and at preserving the rhythmic interplay (I don't know why). Bear in mind that there are exceptions to all these rules of thumb. MCs are quite energetic in comparison with most MMs as well, and so require higher-quality arms. But again, a higher-quality arm, once bought, will make the most of MMs as well. And a given MM will extract more detail than a certain MC, and there are MCs which will be better than given MMs at conveying rhythm. Then there is the issue of matching a cartridge to an arm to achieve the correct resonance.
Confusing enough? I am interested in reading other opinions. The best thing is to listen to some examples of each - usually via friends - and decide which ones ring your bell. For myself, I went through the usual beginning with a high-output MM, then discovered MCs which were superior in some ways and turned my back on MMs, and now I find myself swinging back to MMs. Good examples of each in your budget are the Shure V15 MM (very neutral), various Clearaudio MMs (which kind of sound like MCs), the Dynavector 10X5 high-output MC (a partier), the Denon Dl-103 (low-output, however, be certain you have an MC stage), various wooden-bodied Grados (very musical).
So, get out there and listen!