Shedding A Tear For Pioneer

by Dean Evans at Tuesday 17th February, 2009 at 1:05 pm [0 comments]

A statement released by Pioneer reveals that the company best known for its high-end KURO plasmas “wishes to primarily focus on car electronics, navigation and audio A/V products.”

“This means that Pioneer will withdraw from the flat screen market, both plasma and LCD, by March 2010. We regret that we will no longer be able to offer these highly appreciated products in the future.”

According to reports, Pioneer has forecast a loss of $1.44 billion. The US and UK operations are closing their doors this year and Pioneer is slashing 10,000 jobs.

“It is extremely painful to give up a business we have built as an industry pioneer,” said Susumu Kotani, Pioneer’s president.

The unpopularity of plasma

It’s a sad end for Pioneer’s TV business, which has manufactured CRT and plasma televisions for 25 years. Especially as Pioneer received glowing reviews for the deep black reproduction, rich picture quality and elegant design of its newest KURO plasmas.

But even now, the flagship KRP-600A KURO model costs over £4,300 in the UK. Pioneer’s cutting-edge plasma technology has slowly been crushed between the runaway success (and cheaper cost) of mass-produced LCD TVs and a fast-failing economy.

Pioneer reorganised its TV business in mid-2008, launching the stunning KURO range and committing itself to the production of premium HDTV models. The company also announced a partnership with Sharp to produce Pioneer-branded LCD TVs.

Unfortunately, this is another example of market forces dictating technology development. Pioneer’s KURO HDTVs are undoubtedly superior to competing LCD models, but few people have been prepared to pay through the nose for them.

So what’s next for Pioneer?

After putting up the shutters on its TV business in 2010, Pioneer plans to concentrate on in-car electronics (CD players/tuners, sat-nav, speakers, amps) and its audio business. Pioneer has built a strong reputation for its professional DJ products.

It’s worth remembering that there’s more to Pioneer than plasma. Pioneer is credited with launching the world’s first separate stereo system in 1962; the world’s first GPS car navigation system in 1980; and the world’s first DVD recorder in 1999.

Nevertheless, it’s a sad day for home cinema fans and videophiles.

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