I'm sure there is no single answer, but I think traditional high end audio faces difficult challenges based on generational differences. We baby boomers grew up with big stereo cabinets in our homes, and audio stores on every corner where you could experience high end audio and see what you aspired to own someday. Our youth was a time when music was at the center of, and was the voice for huge societal changes. Music was front and center-not wallpaper.
I suspect baby boomers have been the backbone of the high end market for some time. The baby boom generation was huge in terms of raw numbers compared to those that came before. Unfortunately, we boomers are old now-more and more of us are trading our multi box systems for harp music, or downsizing our living situation.
In contrast, my kids grew up with ipods and mp3 players and all their music in a device they can carry. Audio stores had largely disappeared, lots of that generation have never actually experienced what we call a high end system. They see headphones and iems, not amps, preamps, 200 pound speakers and endless cables when they shop for music. Consequently, most younger folks don't aspire to complex systems with 10 boxes and miles of cables for what is mostly a solitary pursuit- they want simple and/or portable. There are exceptions, but if high end audio is to thrive it will be forced to adapt to different demands as the generational changing of the guard occurs. You can see some companies starting to grasp this and you see more and more simpler, one or two box solutions, or no box all in one systems. The companies that can adapt to changing consumer tastes will be ok and those that don't will find themselves competing for the business of an ever dwindling group of geezers.
