Pioneer and Hitachi consumer electronics feeling the pinch

We've talked about the decreasingmargins in HD gear before, but here's the short version: volume is up and profits are down. Simply put, prices have to be low to get people to transition from their decades-old tube TV to a sexy new flat panel or projector. On exhibit today are the financial reports from Pioneer and Hitachi. Pioneer's home electronics division reported a Q2 operating loss of $35.7 million, with decreasing plasma sales to OEMs and business users cited as a problem both for Q2 and beyond. With the recent investment from Sharp, Pioneer is hoping to shore up the bottom line by introducing some LCDs at smaller sizes. The comparable division at Hitachi's is feeling the pain as well, with disappointing returns from projection TVs and flat panels alike. Click on through if you want to read the red numbers yourself, or just go ahead and buy some new gear!