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The Consumer">http://www.ce.org">Consumer Electronics Association (CEA) believes 2002 will be a slow year for home-audio sales, but not an unsuccessful one for either manufacturers or retailers.

Few music lovers who grew up in the 1950s and '60s could have failed to be influenced by torch singer Peggy Lee, who died of heart failure at her Bel Air home on Monday, January 21. Lee was 81 and had been in ill health for several years.

One of the more compelling live demonstrations at last year's 2001 Consumer Electronics Show was in the room at the Alexis Park hosted by Australia's ClarityEQhttp://www.clarityeq.com">ClarityEQ;. As reported">http://www.stereophile.com/news/10969/">reported last year, using a $350 pair of NHT Super One speakers driven by mass-market consumer gear, the company's PDC-6.6 DSP correction system noticeably improved the midrange tonality and imaging we were hearing each time it was switched into the circuit. This prompted us to give the company the "proof of concept in a hotel room" award for that year.

The past several months haven't been kind to the electronics industry. Most manufacturers are suffering from slow sales and backlogged inventory. But one company is painting a slightly different, if confusing, picture. Unless you've drastically slashed margins while quadrupling sales volume, the phrase "record quarterly sales but decreased profits" appears self-contradictory. Yet Sony">http://www.sony.com">Sony Corporation is claiming exactly that for the last quarter of 2001, the company's third fiscal quarter. (Most electronics manufacturers begin new fiscal years April 1.) On Friday, January 25, Sony announced a 14.4% decline in overall profits for the final three months of 2001, due to sagging demand for consumer electronics products. The company reported that sales of electronics decreased 2.8% to ¥1.55 trillion, with operating income for its electronics unit down a stunning 47% to ¥71 billion. The same announcement claimed an all-time quarterly sales record for Sony Corporation as a whole.

The creator of Koetsu phono cartridges passed away on Sunday, January 20, 2002, just a couple of months short of reaching the age of 95. A wake was held in Chiba, Japan on January 22; the funeral took place on the following day.

In the crush of new products and technologies scrambling for attention at every Consumer Electronics Show, some intriguing announcements can get buried in the noise and require a closer look than is afforded by a quick listen and chat in a demo room. One such technology on display at the 2002 CES was MaGIChttp://www.gibsonmagic.com">MaGIC;, a new high-resolution audio connectivity standard.

The major record labels may put out most of the world's music, but they're doing so on a format first created by Philips and then further developed by Sony: the Compact Disc. In addition to the underlying technology, Philips and Sony established a strict standard for the format, insuring compatibility with all players around the world, which came to be known as the Red Book standard.