In 1980, Denon’s PCM recording system received the 13th Montreux International “Diplome d’honneur technique” award in Switzerland. In the same year, DENON America, Inc. was established in the United States, where a new state-of-the-art recording facility was built.

In 1981, the Philips/Sony compact disc system was announced, which initiated the development of Denon’s DN-3000FE, the world’s first professional-use CD player. Only one year later, in October 1982, the Denon’s DCD-2000 hit the market – the world's first consumer-use CD player. Through precision engineering, Denon continued to pursue even more microscopic reproduction quality and noted, called quantizing distortion, which comes from step-like strains of low-level bits.

In 1983, Denon initiated sales of the world's first Compact Discs available at retail and led the industry in the introduction of consumer-use CD players. The company also commenced sales of video cassettes worldwide. Then, in 1987, Denon debuted the world's first CD Cart™ Player, the DN-950F, for the broadcast and professional industries. The second CD pressing plant was opened in Madison, GA in 1987 as well. Denon commenced sales of its legendary line of high fidelity, high performance audio/video amplifiers in 1988.

In 1989, Denon's industry-leading Super Linear Converter (SLC) mechanisms were replaced by the Real 20-Bit Super Linear Converter. The company also greatly expanded its line of hi-fi car audio components and built a CD player plant in Germany. Denon experienced a reorganization of its operations to reflect ongoing changes in its product line. Denon France S.A. was also established to begin CD-ROM pre-mastering and pressing services.