In a surprising twist of events, Pioneer Corp. today confirms yesterday's speculation that it will discontinue production for its own plasma display panels. Citing losses for its fourth straight year, the Japanese consumer electronics multinational will instead outsource panels from rival Panasonic in an effort to trim burgeoning production costs.

"...we have judged that maintaining the cost competitiveness of plasma display panels at projected sales volumes will be difficult going forward. Accordingly, we have decided to terminate in-house plasma display panel production and to procure these panels externally, after panel production for our next series of models is complete."

Pioneer's plasma technology have traditionally been well-regarded in the high-definition television market, while Panasonic's plasma TV offerings are more or less viewed as cost-effective alternatives to similiar Pioneer displays. According to news reports, Pioneer's announcement represents a signifigant change in plans, after spending well around 100 billion yen to establish four plasma panel production lines of its own.

"This move will allow us to transform our business model for displays from vertically integrated, capital-intensive operations to a leaner business model geared to making value-added product proposals. Pioneer is currently in discussions on the feasibility of procuring panel modules that may incorporate the Company’s proprietary technologies."