I wanted to know whether I should buy a sound card for the Z5500 speakers or will the ASUS P6X58D-E (having Realtek 889) suffice for the speakers? There is also this DAC thing which everyone talks about but I really don't understand anything about it. Please can someone clear up all this for me and tell me exactly what more do I need to buy?
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Well, honestly I don't know what DAC your motherboard has (nor mine for that matter) but in general sound cards have much better analog part than any motherboard.
But lets explain shortly (if I can) what DAC mans - it is part of the sound system that converts digital (discrete) values that are outputted by your sound processor into analog value to the speakers. Thus the name - Digital to Analog Converter. Generally the better DAC the better audio.
So do you need sound card? That I guess depends how do you want to drive the speakers - via analog channels or digital connection?
If you drive them through digital connection, you'll need just 1 cable from your PC to the speakers. The DAC processing is done on the speakers themselves (they have build-in sound processor), thus the audio quality is depending largely on the DAC used by the speaker's control pod.
If you're using analog connection, than the audio card will do the DAC stuff and the speakers will not be driven by the control pod (only powered by it).