Interesting take on things @laynes...
Just for anyone who is unaware, all DCS DAC's use FPGA's in a configuration they refer to as their "Ring DAC". FPGA's are software-programmable. DCS' designs are certainly not the norm -- they have a lot in common with FPAA's (Field Programmable Analog Arrays). DCS knows FPGA programming, and are experts at it -- they're the pioneers of high-end use of these configurations so I don't think it's a lack of software design/programming skills. The way I read it is that they're saying they had an implementation that worked but "MQA" (the "group" formed by Bob S. and company) had a set of restrictions on how MQA is implemented and DCS didn't adhere/conform (similar to another company that had issues with MQA at CES recently -- I believe the details are in this thread a few months ago). DCS references "the MQA development team" (I underlined it below), which I take it means MQA's (the company/group formed by Bob S.) development team, not the DCS developers working on MQA.
Almost all DCS DAC's are hybrid software designs since the FPGA's run this software rather than purpose-built ASIC's which are traditionally referred to as entirely hardware and not reprogrammable or capable of running new software uploaded onto them like FPGA's.
I do know that DCS' current plan for supporting MQA is to sell a separate unit that will do "streaming" which can be connected "somehow" to existing DCS DAC's that don't have the built-in functionality. Exactly where and how the MQA decoding is done in their implementation is still unclear to me (it may be out in press, I'm just not aware of it). They may even hold off on making it until there's sufficient content to play along with demand.
Here's a snippet of the link I posted:
" ....The current situation is that our development team have prototyped an MQA solution inside a dCS DAC but this “software only” mode of enabling MQA has hit some challenges. We are working with the MQA development team to identify solutions to these technical challenges and this work may result in us changing our architecture from software only to a hybrid software and hardware solution."