1. The room. A modest system in a great room can sound great whereas a great system in a bad room will sound worse - the wider you open the window, the more much flies in, as the saying goes.
2. The system - at the risk of repeating myself across various threads, systems are called systems for reason - it is the quality of the individual components but also how they do or don't work together as a system.
Recordings are what they are. A great system in a great room will make a bad recording listenable. A great recording on that system in that room will sound wonderful.
A great recording on a bad system in a bad room will sound "meh" at best.