Okay, first of all watts are a value of electrical power obtained by multiplying the voltage by the amperage in a circuit. As far as speakers go, this value can be misleading for a couple reasons.
1. Speaker power ratings are generally listed two different ways, one being maximum power capacity (which is probably the case with the 400 watt speaker you mentioned) and what is generally called RMS. Now, RMS is a misunderstood thing. Usually when someone mentions it they mean the average operating power range of the speaker. This isn\'t quite right though. RMS is really an abbreviation for the words Root Mean Square. This amounts to the square root average of a group of squared numbers, which (as applicable to speakers) are used to calculate the average or apparent power range of the speaker in question. Suffice it to say that this is what is meant and RMS values are not meant to reflect the total power capacity the speaker can handle. It\'s possible then, for a 400 watt speaker to run on an average of 30 watts under normal use.
Okay, now that we\'ve gone over that whole power thing, let\'s move on to how and why that\'s not what\'s really important by itself.
2. Speaker sensitivity: The standard is to apply one watt and measure the sound pressure level (SPL) at a distance of one meter. Different speakers have a different sensitivities, and a more efficient speaker can produce an SPL greater than a less efficient speaker using the same signal strength. Keeping this in mind, it is easy to imagine a 100 watt speaker that is capable of reaching greater SPL readings than a 400 watt speaker if it is more efficient.
So when you go shopping for speakers you have to determine how much power you need as determined by the size of your listening area, then purchase your speakers accordingly, keeping into consideration the sensitivity, frequency response and even resistance of that speaker. If a speaker is capable of producing 95 dB at 1 meter with 1 watt, it\'s concievable that producing 105 dB will only take 10 watts, and then 115 dB with 100 watts.
Simply put: Bigger is not always better since at some point the larger speakers become cost prohibitive, especially considering your application.