WSJ: Big electronics shakeout on the way?

It's no secret that competition in the world of gadgets and consumer electronics is getting stiff, but the Wall Street Journal had a piece the other day about how big names like Pioneer, Sony, and Philips have really been feeling the heat lately as they watch their profits evaporate and market share erode. Sony's taken a big hit lately,
Samsung recently came up short in their quarterly earnings, Philips says net profits are down 40%, Pioneer has been hurt by a big price drop in DVD recorders, and LG admits that the oversupply of plasma TVs is taking a toll on them.

Obviously we know who's stealing their thunder (hint: there are literally hundreds of manufactuers in China making DVD
players these days), and the Journal thinks the industry is facing a massive shakeout. They don't go as far as to predict who might be the first to fall, but they do talk about how Philips has started pouring more resources into medical equipment and is hinting at spinning off their consumer electronics business, Thomson SA is focusing on professional video gear and shifted its TV business into a joint-venture with a Chinese company, and in order to stay competitive, and how once mortal foes like Samsung and Sony and Hitachi, Toshiba, and Matshushita have been forced to band together on ventures like LCD panel production.

[Thanks, Stern]