Interesting article about Pioneer and the end of Plasma tv's

[Trey803 5,000+ posts]

http://newteevee.com/2009/02/21/pioneers-kuro-killing-a-tipping-point-in-the-plasma-era/

Pioneer’s Kuro Killing: A Tipping Point in the Plasma Era

The Pioneer Kuro line will be gone by March 2010The end of the Pioneer Kuro line of TVs represented a true tipping point in the TV industry, one preceded by long-gestating momentum from opposing forces. The recession and LCDs tipped over plasmas for good, and the slope downward will be quite steep, and fast.

Last week, Pioneer announced it was killing off its critically acclaimed TV business by March 2010 and will concentrate on car and audio/visual systems. It was a dramatic fall for a company that just one year ago had CES abuzz with its newest plasma TV, the so-called “Ultimate Black” Kuro.

The Kuro’s tech was impressive because it reduced light emissions from black areas of the screen to such a degree that at its maximum brightness, the contrast ratio was “almost infinite.” The result was a plasma display with the most vibrant, colorful images yet.

But even at the hype’s peak, problems in the plasma industry were apparent.

Plasmas were at their most popular from 2004 to 2006, a period that saw them overtake rear-projection TVs as the top big-TV format. But they had a tough time offsetting their lowest average prices with high sale volumes. The spectre of LCDs also prompted many customers to hold off on making a purchase. By February ‘08, soon after the recession had officially taken hold, premium-quality Pioneers seemed out of touch. Most critically, LCDs were sporting features long the domain of plasma: bigger screens, greater contrast ratios, thinner and cheaper sets. LCD picture quality still failed to reach plasma levels, but to average consumers, the difference was no longer obvious.

Fast-forward to the start of 2009, and LCDs were outselling plasmas 8-to-1 globally, and the dominating the best-selling lists on Amazon.com.

Pioneer tried a last-ditch partnership with Panasonic to create a version of its plasma TVs, contributing its own “secret sauce” to keep the Kuro tech flowing, but that effort appears to be over.

The slumping demand is already having consequences: Projected losses of $1.41 billion in 2008-09 (following a loss of $203 million in 2007-08) and a nearly 50 percent drop in operating revenue have set the scene for 10,000 jobs cuts and the closing of U.S., UK and Japanese facilities. But Pioneer’s not the only TV maker suffering. They’re all taking it on the chin, regardless of display type.

Both Hitachi andVizio had to end the bleeding by shuttering plasmas to concentrate on LCDs. And not even the usually flush holiday period buoyed TV companies to a safe financial landing: Sony, Panasonic, and LG all posted lower quarterly profits.

Component suppliers have similarly been unable to escape the pain. As Om noted in recent posts, screen manufacturer Corning posted fourth-quarter 2008 revenues of $1.1 billion and still had to let go of 3,500 jobs.

Pioneer’s decision to end its plasma production was more complicated. It bought out NEC’s plasma business in 2004, used it as an OEM for its glass, but was recently forced to shutter the unit. Now, the only plasma manufacturers left standing are Panasonic, LG, and Samsung, all of which make their own components.

Panasonic is in good position to benefit from Kuro’s death. Most of the Pioneer engineers who came up with Kuro switched sides and are now working for Panasonic. In addition, recent demos have shown that Panasonic plasmas are nearing Kuro quality. Already in possession of the biggest plasma market share in the world (at more than 35 percent), the company will be able to build a diversified product line using plasma TVs as a premium screen type that appeals to a niche that still wants them. Add to that the fact that it receives significant revenues from selling its glass to other companies, including JVC and Fujitsu, and it appears that it’ll be able to keep plasmas afloat longer than any other company. Panasonic will inherit the burdens of the difficult economy and the LCD challenge, but once plasma is no longer economically feasible, its own LCDs will have likely caught up in picture quality. In fact, ultimate black contrast tech is already getting closer to LCDs. So it’s only a matter of a few years (maybe even less) before plasmas finally die out.

As for Pioneer, not all is lost. Reps say that the plasma TVs only accounted for 14 percent of its business worldwide, and patents for the Kuro technology will provide a profit for awhile. But any positives are bittersweet. The legacy of the Kuro TV will be that it was another best-in-class technology that was humbled by the force of the economy and the competitive market.

- Follow Jose Fermoso on Twitter at twitter.com/fermoso

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[armitank]

interesting, ive never looked at a plasma and an LCD next to eachother, is the picture quality really that recognizable?

 

[soloXgt 10+ year member]

^^^^^not really the pic quality, but the refresh rate is faster on a plasma

 

[Rich B 5,000+ posts]

This is a terrible time to try and keep selling $5,000 plasma TV's.

HeLL, even $1,000 sets are becoming a stretch for a lot of people since credit is getting harder to get.

 

[Rmsanger 10+ year member]

Yeah they are nice but who wants to pay $4500 for a 42 inch plasma when you can get a great quality 52in LCD under 2k.

There is a very small market for videophiles but not enough to keep up with LCD cost reduction over the long-run.

 

[blazeplacid 10+ year member]

yeah really its like those idiots who pay $400 for a subwoofer, I mean really who would spend that much and then another $500 on amps and wires

people just spend thier money diffrant ways

 

[Hintzyboy 5,000+ posts]

^^^^^not really the pic quality, but the refresh rate is faster on a plasma

I beg to differ. I can really notice the difference in depth between a Plasma and an LCD. Especially with the blacks

 

[KyleBechtold 5,000+ posts]

plasmas are a lot faster.. watch a football game on an lcd and then on a plasma.. the lcds blur the image when the play is moving fast and catches up when they go to huddle.. plasmas catch it all

 

[Hintzyboy 5,000+ posts]

This is kind of old news though. And while it's sad to see the maker of the world's best plasma cutting production, I can't say I'm too broken up about it, seeing as I wouldn't be able to afford one any time soon and probably wouldn't buy one if I could. I can go to wally world and get a really nice 50" Plasma for around a grand, so why would I spend $4k on a Kuro?

 

[Vipervenom18 10+ year member]

interesting, ive never looked at a plasma and an LCD next to eachother, is the picture quality really that recognizable?

Yes. I love good plasmas. Hence why this is bad news for some (like me.)

But I got my 800u a few months ago so it's all good for me (for now.)

 

[Vipervenom18 10+ year member]

Yeah they are nice but who wants to pay $4500 for a 42 inch plasma when you can get a great quality 52in LCD under 2k.
There is a very small market for videophiles but not enough to keep up with LCD cost reduction over the long-run.

I got a 50 inch 800u series Panasonic (top line model) for 1800 bucks from MagnoliaAV.

4500 for 42inches? lol.

 

[bigbangtheory 5,000+ posts]

Does this mean these TV's will be on the cheap? If so, I wouldn't mind hitting up a Pioneer Plasma! They look amazing and I have a Sony XBR5 46" LCD that I love to death.

 

[Hintzyboy 5,000+ posts]

Does this mean these TV's will be on the cheap? If so, I wouldn't mind hitting up a Pioneer Plasma! They look amazing and I have a Sony XBR5 46" LCD that I love to death.

No, it just means that after 2010, there won't be any more and it will be harder and more expensive to get service

 

[LiquidClen 10+ year member]

Yeah they are nice but who wants to pay $4500 for a 42 inch plasma when you can get a great quality 52in LCD under 2k.
There is a very small market for videophiles but not enough to keep up with LCD cost reduction over the long-run.

Panny's had 42" 1080p's for $800 around black friday. I got my 42" 720p for about $1k sometime in september... and it's one of the most beautiful pictures of any TV i've seen

 

[bigbangtheory 5,000+ posts]

I think he is just talking about Pioneer plasma's being expensive.

At Sams club, there are a ton of cheaper Plasma's from Vizio, Phillips and the likes.