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Does the quality of the record make much difference with a poor quality needle and set up?
Define poor quality?
I can tell the difference between a good and a bad mastering or pressing with my modest set up (40 year old Rega Planar 2 with original Ortofon cart/third party stylus, Arcam Alpha 3 amp, Celestion 5 speakers). Probably about £350 all in with today's ebay prices. You don't need to spend thousands to get a set up where the recording is the limiting factor.
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That setup is definitely not poor quality :)
I was imagining a Crosley with the supplied needle bent by your 10 year old and covered in wax and fluff.
I know people (even some on here) who love the Stanton 500's or similar on an SL1200 and I had that kind of setup for 10 years. Even the AT 95e is circa £40 and does a really decent job. You can hear the quality of the pressing with that kind of setup. I wouldn't call that kind of thing poor quality either.
Setup is hard to get perfect but it's easy to get about right.
Does the quality of the record make much difference with a poor quality needle and set up?