I would be somewhat surprised if the SD-860 did SACD as well as the NS-999ES. The S-N is a very good player in its class/price range and IMO is better than any player in Sony's standard product line. But the 999 is an ES model that streets for more than twice as much as the MSRP of SD-860. The 999 is at least 1 and probably 2 steps up in class and could be considered a high end gateway player.
Caveat: I've used other ES players, but not the 999.
I don't know we'll see. I don't get too caught up in what a component cost after a certain point. Having said that, the Sony blows away my Outlaw 950 and so I always use the analog outputs of the Sony, so you could very well be right.
I've tried several CD up-converting paths and have never been very impressed. IME the analog outputs of a good player with quality DACs is as good as or better than any of the up-coverting players schemes I've heard. And a good transport and outboard DAC will just blow away any upconverting CD player or processor, IMO.
If the source component is built better with better DAC's, etc., then this makes sense. As I said, I get much better performance using the analog outputs from my 999 ES to the analog inputs of my Outlaw model-950 then what I get using the DAC's of the Outlaw. So yes, I agree there is a difference, but it depends on which component has the better DAC's, path, components, etc. But, I also know that at least one of SN's cheaper CDP used some of the best Burr Browns out there. The quality of components these guys use is what got me looking at them to start with.
However, upconverting to me still makes sense. I'll reserve comment and go with what your telling me for now as I have never tried these. I'll let you know how it turns out. But, I have to tell you the Redbook CD performance of my 999 is not very impressive. Don't know why, as the SACD is very good. This is why I'm hoping up conversion will help as I've got to the point that I just don't like to listen to my RB CD's. Or, maybe I'll luck out and the 860 will do a good job, but I'm not really expecting it.
You don't have a dedicated CD player, right? In that case I would suggest trying it boths ways, listen with the P-965 passing the standard 16/44.1 and then to the various upconverting options that are available. But IMO you will get better performance with a dedicated CD player (with or without an outboard DAC) and putting the P-965 in analog pass-thru mode.
No, I don't have a dedicted CDP in my system right now. Got rid of my Rega Planar when I bought the Sony, mistake! Yes, I will try both for sure. And again, I agree with what your saying, but of course it all depends. I'll have to see if I can find a combination for good RB performance with my new SN gear, if not I'll have to search for a dedicted CDP. I have a huge CD collection and can't afford to let them go to waste.
Newcastle is an excellent mid-fi brand, IMO. There's a lot of value for the money in their equipment and IME it has always been very reliable. But Newcastle is not high-end and you shouldn't expect high end performance.