Make no mistake, home theater equipment is expensive. But a Sony suit and tie has gone on record saying flat screen HDTV prices are falling too fast for his liking.
The cost of a HDTV screen has plunged 5% and 7% lower than expected this year, probably due to smaller companies selling screens for less and dragging big boys like Sony down with them. Stan Glasgow, president of Sony, says this sudden drop could leave the industry less able to invest in future technology.
“LCDs will continue to experience heavy price erosion, but not at this level,” he said. “It is hard to see that business model (of drastic price cuts) sustaining itself.”
It’s even harder to sympathize with Glasgow, who I’m sure isn’t hurting for spending money.
And though Sony aren’t exactly handing out HDTV screens in the street, it’s quite comforting to know the big names are having their hands forced by the smaller companies.
Let’s mark this one down as a consumer victory for now.
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fil said
December 18 2006 @ 1:42 am
Mark this down as the second time that Sony overestimated what they could charge for their product. The soft hit of PS3 landing clearly shows that people have more gaming options than Sony and chose to continue with their 360 or invest in a new 360 or Wii if they are still in the previous generation of game machines. Sony had the cojones to ramp up the cost of their system, confident that it would blow people away. Now the once-hopeful PS3 Pre-buyers who hoped to rake it in on Ebay like they did with the 360 are watching their investments gather dust and, in some cases, lose money! Nicely done, Sony. Score one for heady competition.
dtv said
January 11 2009 @ 8:57 pm
I would never buy any of those “low-end” TV’s..just not my style when it comes to electronics. But I like the way they are forcing prices down on companies like Sony.
Rock on Vizio!