Sony Worried HDTV Prices Are Falling Too Quickly

Sony executives said last week that LCD TV prices will drop 25 to 30 percent this year, much more than they expected, a trend that could leave the LCD manufacturers with little incentive to invest in new technology. According to some estimates, there are more than 90 companies making LCD TVs today, causing price pressures that may bankrupt many of them. While consumers will benefit in the short term, the long-term outlook for technological advances may suffer. More from CNET.

Let's not panic too quickly here, fellas. If the market really is that competitive, then constant pressure from smaller upstarts will force the big guys to keep innovating to stay ahead, regardless of any price wars. While Sony may be forced to lower prices from time to time to keep pace with cut-rate manufacturers, it can continue to maintain its price premiums due to its technological and brand-name advantages.

And for those of us who spent $4,000 on an HDTV three years ago that now sells for less than half that amount, you'll have to forgive us if our eyes don't well with tears for companies like Sony. I hope that my $4K was well-spent...