Hey Ray - That is the question of the 21st century - The short answer, is 'most definitely', the long answer is, it shouldnt, and with current progress in USB audio application, perhaps, one day it will not. Its one of those things that us crazyphiles watch with bated breath. I think we will get there. From my experience with recent DACs it appears we are very close to parity on the differences with SPDIF digital inputs. --- Stay tuned!