I spent hours today experimenting and listening on my new NW-S706F. Used ATRAC 3+ 128, 96, and 64kbps to convert three songs. The files converted were native MP3's, two @ 192 and one @ 224kbps. I transferred all the files over onto the player and listened to all the different quality versions. That means for each song, there were four files transferred, one in the native MP3 format and the others in the mentioned ATRAC 3+ bit rates. I can honestly say that I could not tell the difference between the ATRAC3+ 96kbps and the 192 and 224kbps native MP3'S. However, I did notice slightly lower quality on the 64. I also want to say that I'm very pro-quality but if i can't tell the difference, then why transfer my files at 192 when i can almost double the space if I convert to ATRAC3+ at 96kbps. Anyway, those are my tests, and they seem in line with Sony's claims on ATRAC quality. If I did notice lower quality in the ATRAC3+ 96kbps, it was psychological because the listening tests were not blind and I knew I was listening to a lower bit rate file. If I had gotten someone to play the files to me randomly and ask me which sounded better, I don't think I would've noticed a difference.
I think if these tests were done on high fidelity equipment with top quality head phones, then we'd hear a difference, but these are more normal conditions.
(I also want to add that sonicstage made this process a pain in the ass as it doesn't allow you to transfer more than one file to the player that's the same song even if they are at different bitrates, so it took much longer than it needed to find a way around it)
A sidenote, I tried playing the native MP3 from my laptop and then to the same ATRAC3+ converted file @ 96kbps on my NW-S706F using the same headphones and to my surprise, the audio actually sounded BETTER on the MP3 player. A testament to the amazing sound quality of this particular player and Sony DAP's in general as it outperformed the sound card on my laptop!! (It's a decent laptop)
I think if the self professed audiophiles out there (myself included) would put our pride aside just for a bit, we'd double our music capacity. But hey, if you can hear the difference, then stick with the bit rate/CODEC that makes you happy. I originally transferred about 3.5 gigs of native MP3's at mostly 192kbps. After this test, I converted them all to ATRAC3+ @ 96kbps and retransferred them and now I can fit double the number of songs!
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DonCan
I spent hours today experimenting and listening on my new NW-S706F. Used ATRAC 3+ 128, 96, and 64kbps to convert three songs. The files converted were native MP3's, two @ 192 and one @ 224kbps. I transferred all the files over onto the player and listened to all the different quality versions. That means for each song, there were four files transferred, one in the native MP3 format and the others in the mentioned ATRAC 3+ bit rates. I can honestly say that I could not tell the difference between the ATRAC3+ 96kbps and the 192 and 224kbps native MP3'S. However, I did notice slightly lower quality on the 64. I also want to say that I'm very pro-quality but if i can't tell the difference, then why transfer my files at 192 when i can almost double the space if I convert to ATRAC3+ at 96kbps. Anyway, those are my tests, and they seem in line with Sony's claims on ATRAC quality. If I did notice lower quality in the ATRAC3+ 96kbps, it was psychological because the listening tests were not blind and I knew I was listening to a lower bit rate file. If I had gotten someone to play the files to me randomly and ask me which sounded better, I don't think I would've noticed a difference.
I think if these tests were done on high fidelity equipment with top quality head phones, then we'd hear a difference, but these are more normal conditions.
(I also want to add that sonicstage made this process a pain in the ass as it doesn't allow you to transfer more than one file to the player that's the same song even if they are at different bitrates, so it took much longer than it needed to find a way around it)
A sidenote, I tried playing the native MP3 from my laptop and then to the same ATRAC3+ converted file @ 96kbps on my NW-S706F using the same headphones and to my surprise, the audio actually sounded BETTER on the MP3 player. A testament to the amazing sound quality of this particular player and Sony DAP's in general as it outperformed the sound card on my laptop!! (It's a decent laptop)
I think if the self professed audiophiles out there (myself included) would put our pride aside just for a bit, we'd double our music capacity.
But hey, if you can hear the difference, then stick with the bit rate/CODEC that makes you happy. I originally transferred about 3.5 gigs of native MP3's at mostly 192kbps. After this test, I converted them all to ATRAC3+ @ 96kbps and retransferred them and now I can fit double the number of songs! 
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