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Yeah it used A something compression. I vaguely remember arguing about this shit with people.
Ridiculous considering it took another 10 years before I even touched an actual MD player. I do have some MDs somewhere but no device to play them. Think I borrowed a recorder off my boss and never bought one myself.
MD was a bit compressed I think but shock proof. I did buy a recording version. It's availability kind of coincided with recording into the Mac via SoundEdit 16 so was less interesting for me.