The big news this morning was that Pioneer is laying off persons and getting out of the plasma TV business (story here). Apparently, Vizio is also pulling out of plasma TVs in favor of LCD TVs. Story here.
And Vizio’s reasons seem to be more related to marketing than to the economy. From the story (emphasis added):
“There were several reasons behind the decision, Ms. Newsome said. Plasma sets simply don’t show as well in big box stores, which are typically lighted by bright fluorescent and halogen lights, giving consumers the impression that LCD TVs have a more exciting picture. Also, the company wanted to devote all of its available shelf space to the technology that moves off the shelves fastest.”
I am a little disconcerted that the type of lighting in stores could help drive a decision to discontinue a product line, but I’m not surprised when a less-expensive technology that does pretty much the same thing as a more expensive technology wins out.