When you listen to an mp3, isn't it converted to a wav?
It's decoded to raw 44.1khz stereo PCM audio data, which is essentially the same thing as a WAV file, but just... without the file. It does it on the fly, one frame at a time, streaming the decoded audio "live" to the DSP. It does this at whatever "quality" level the MP3 was created as.
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Tony Fabris