Has Plasma Passed its Prime?

For some time, the rivalry between LCD and plasma has looked neck and neck. LCDs are easier to handle, but until recently were more expensive; plasma wins out on picture quality, but until recently had some performance issues. Like Greek gods, the big names in consumer electronics have lined up on either side of the line, with Sony squarely backing LCD, while Panasonic and LG have thrown their weight behind plasma. Both camps have engaged in death-defying price drops in a headlong drag race to claim the title of dominant technology. (For more of our coverage on the debate click here or here.)

But this month, one side swerved. According to retail tracking by The NPD Group, revenue from plasma TVs was down 16 percent in February from 2006 figures, generating $181 million compared to last year's $216 million, despite a 30 percent increase in unit sales. Overall television sales were down 18 percent, but by contrast, LCD sets showed a resounding 58 percent increase in dollar volume.

The drastic price cuts are the root of the problem and the deficit is hitting some bottom lines hard: LG reported a net loss of $132.5 million thanks in large part to a plasma shortfall, and executives expect the same results this quarter. The Wall Street Journal reports that this may spur LG's conversion to LCD through its partnership with Philips Electronics.

Not everyone has given up hope on plasma just yet: Reviewers are gushing over Panasonic's new behemoth 103-incher (pictured). And apparently they still make pretty good incentive rewards in Malta.

[Image courtesy of Engadget.]

Comments

[HDTV Ratings]

According to Zeitgeist, LCD is more popular than plasma. I'm guessing a lot of that is due to price differences, but it does seem LCD is much more popular.

[WaMuz's]

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