Is This the New Normal?
I recently came across some shocking news in Stereophile: the iconic German hi-fi brand MBL has filed for bankruptcy. Personally, I found it deeply unsettling. If even a brand as established and conceptually unique as MBL can’t survive, what does that say about the state of the high-end audio market today?
In recent years, we’ve seen a steady stream of acquisitions involving legacy hi-fi brands. Not long ago, I even heard that McIntosh had been acquired by Bose. For those who know the historical stature of McIntosh, that’s a jaw-dropping development. Wait—a brand like McIntosh didn’t acquire Bose, but was itself acquired by Bose? Can that really be true?
But honestly, in today’s hi-fi landscape, nothing seems too surprising anymore. Global markets are under pressure, and yet high-end audio prices continue to rise without any apparent ceiling. Put simply, hi-fi audio is no longer something most people can afford. You’d now need to save an entire year’s salary—or even ten—to buy a pair of speakers.
Is this really normal?
How Did We Get Here?
Of course, the term hi-fi inherently carries a sense of luxury. It was never meant to be a mass-market category. But even so, there must be some kind of standard—some boundary. In my view, today’s hi-fi has long since crossed that line. And that’s dangerous. So what changed?
First, true innovation in high-end audio has become increasingly rare. If you look back over the history of audio development, there were distinct turning points—eras when new breakthroughs transformed the market. These changes allowed people to experience sound on a new level, and naturally, they were excited about it. In those cases, price increases were understandable. When you build something demonstrably better, no one questions why it costs more.
Second, we now have many affordable products that offer genuinely excellent quality. At the end of the day, audio equipment is still machinery—and machinery evolves fast. Especially when it’s developed by the right people. The times are changing quickly, but many legacy audio brands continue to rely solely on their past reputations. As a result, they’ve been slow to adapt. This isn’t unique to audio; it’s something we see across many industries.
Third, the marketing strategies many hi-fi companies have chosen simply don’t seem sustainable in the long run. A reviewer I know once put it this way: the first-generation engineers who originally founded these hi-fi brands—those with true technical skill and passion—are now retired or gone. The people running the companies today, he said, seem more driven by profit than by any real love for audio.
Of course, from a business perspective, this makes sense. The role of a company leader is to grow the company. But to me, it feels like today’s leadership is far too focused on short-term gains. I sometimes get the impression that they’re running the business just well enough to sell it off to the next investor at the highest possible price.
Am I the only one who feels this way?
These days, high-end audio brands seem to have lost interest in attracting new users. Instead, they focus solely on a small circle of existing customers—particularly those with significant wealth. Whenever they unveil a new product, it's always framed as a dramatic upgrade. But is it really?
More and more people are beginning to question the actual quality of the components these companies use. Are they truly better, or is it just marketing?
Personally, I like McIntosh and have long enjoyed using Marantz. But honestly, I don’t think I’ll be purchasing any new products from either brand moving forward. Just take a look at the latest top-tier release from Marantz. The price has multiplied compared to the previous model. Has the quality improved by that much? Or is it simply that the company needs to set that kind of price point in order to turn a profit?
The most serious problem is that this trend has already taken hold across the entire industry. Every time a new. product is introduced, its price seems to rise unreasonably. It’s almost as if there’s a competition to see who can release the most expensive product.
Do you have $100,000? Congratulations—you can now buy a pair of flagship speakers.
A Market Oversaturated with “Luxury”
In every industry, there are brands that sell ultra-premium products. We often refer to these as luxury brands. But I would argue—without hesitation—that the high-end audio industry has more so-called “luxury” brands than any other field, at least when judged by price alone. And the question is: how many of them will still be around in the years to come?
Let me be clear—I'm not criticizing these companies simply because their products are expensive. What I’m asking for is a valid justification for the rising prices. And I sincerely hope that justification isn’t merely the pursuit of higher profit margins.
We’re looking at an extremely small market with far too many manufacturers competing in it. And yet, rather than working to expand the market, these brands have opted to shrink it even further. That, to me, is why the future of high-end audio looks increasingly bleak.
At this point, I find it more realistic to hope that companies making practical, affordable products will raise their quality, rather than expecting luxury audio manufacturers to suddenly shift toward practicality. At least that feels possible.
A User’s Perspective
Some might say I don’t understand economics or business operations well enough. And they’d probably be right. But from a user’s perspective, I don’t think I’m alone in feeling uneasy about the current direction of the high-end audio industry.
It saddens me to see long-loved brands struggling more and more. But in many cases, I believe those struggles are the consequence of their own decisions.
This article began with the news of MBL filing for bankruptcy, but it ended up becoming a broader criticism of the entire high-end audio industry. I admit—this piece doesn’t offer professional analysis or concrete data. It’s simply a personal opinion.
So please take it as just that—one user’s complaint, nothing more.