Vizio Latest To Exit Plasma Business

Is plasma going the same route as HD-DVD?

Vizio became the second company this week to say it would no longer manufacture plasma TVs and would focus on LCD technology (the Blu-Ray of display technology in this scenario) going forward. Earlier, Pioneer Electronics said it is exiting the flat-panel TV business altogether by March 2010, according to reports.

Vizio was successful in selling plasma and LCD TVs through retailers such as Costco and Wal-Mart, offering low cost alternatives to brands such as Sony and Sharp. Plasma technology was initially much less expensive than LCD, but the price delta between the two has been reduced to the point that LCD, which uses less power and is said to have a longer lifespan, has gained a stronger foothold with consumers and business users.

Vizio is nearly out of its plasma inventory and didn't introduce any new plasma displays as the Consumer Electronics Show in Las Vegas last month. LG, Panasonic and Samsung are the only large-volume manufacturers still selling plasma in the United Staes.

Sales of plasma displays fell 12 percent in the fourth quarter, compared to the year-ago quarter, according to DisplaySearch.