Vizio Ceases Plasma TV Production

This week Pioneer wasn't the only company indicating it will retreat from the plasma TV industry, Vizio has now made it official that they will no longer produce sets with the technology. Vizio is only 5 years old, but as a company they gained historically fast market share through big box retailer deals and aggressive pricing tactics that left them as the low-price leader in many markets.

Moving forward, they will concentrate on marketing and selling only LCD TVs. While their website still indicates the availability of plasmas, company co-founder Laynie Newsome pointed on to reporters that the company is almost out of inventory. In addition, Vizio didn't announce any more plasma TVs at January's Consumer Electronics Show (CES) in Vegas.

Aside form smaller specialty companies, the withdrawal of Pioneer and Vizio leaves just LG, Panasonic and Samsung holding the plasma market steady. Newsome cited several reasons for the plasma decision, some of which saddened us. He indicated that plasma sets simply don’t show as well in big box stores, which are typically lit by bright fluorescent and halogen lights, giving consumers the impression that LCD TVs have a more vivid picture. I've experienced this first-hand and can attest to the fact that consumers, not manufacturers, are driving the prevalence of torch mode being the preferred marketing method for new displays.

Vizio isn't stupid, LCD indeed seems to be selling more aggressively these days and in this economy there is little time for the company to patiently discover ways to educate consumers about the advantages of plasma technology. At least not when they can just as easily sell that consumer a bright LCD panel.

The news isn't all bad, we saw a sub-$2000 55-inch LED-backlit LCD TV (the VF551XVT) at CES this year that is slated to be available in July. LED backlit TVs, when done correctly, can match plasma pixel-for-pixel in terms of black level capability. The new set will also have the (potentially dreaded) 240Hz frequency and a stated 1,000,000:1 contrast ratio. Fortunately it also comes with a scanning backlight - a technology used to reduce motion blur without the largely inefficient frequency boosting frame interpolation we have seen to-date.

Vizio seems to be making some good (business) decisions, though we're personal fans of plasma technology. We want to see all of the companies thrive and if this is what it takes then we'll applaud companies that give thought to market directions and trends and act accordingly. We'll also see a $199 Blu-ray player from Vizio around May of this year that includes BD Live (Profile 2.0). That seems like a step in the right direction for a company that craves brand recognition and a position as a low cost, high-value leader.