HDTV Prices Are INSANE!!

If you spent any time on the East Coast during the '80s you'll remember an electronics store called Crazy Eddie's. Radio and TV ads had the owner, Crazy Eddie, screaming about the store's savings. When talking about flat-screen TV prices this holiday season, I feel a little like Crazy Eddie. "These prices are INSANE!!"

Just a few years ago, 50-inch HDTV plasma TVs retailed for upward of $7,000. Early in 2006, we saw the first sub-$2,000 50-inch HDTV model from a company called Vizio. The company has since dropped its price to $1,699, but that's not the MOST INSANE deal offered. Costco is offering a 50-inch HDTV plasma monitor from a company called Maxent. With an automatic Costco discount, this set retails for $1,499. It's the first sub-$1,500 50-inch HDTV model on the market. "THAT'S INSANE!!"

As a savvy consumer you're asking yourself a few questions right now, foremost of which is, "Vizio? Maxent? Who are these guys?" These are new companies that have gone after a very niche market: the budget consumer. Unlike Panasonic, Sony, and Phillips, Vizio and Maxent aren't manufacturing TVs for the entire range of HDTV consumers. They have limited distribution through big-box discount stores, and their business model makes sense: don't try to please every consumer or try to be in every retail outlet. They've picked their market and are keeping costs down by pursuing the budget buyer exclusively.

Next question: "Are these HDTV plasmas any good?" For the price, these TVs are very good, but compared to high-end plasma sets, you can definitely see a quality difference. Several PC magazines have written about these sets (Vizio and Maxent), and they received surprisingly good reviews. It's good to see what you'll miss out on if you opt for a lower-cost set, but those features and differences probably won't matter if cost is your number one consideration. (And for most of us, isn't it always number one?) As for my personal opinion, I did a segment for Good Morning America showing sets from across the price spectrum. As I scanned the studio to inspect the sets, I noticed that the Vizio I included was a little less crisp, the colors a little less vibrant, and the video inputs a little less plentiful or diverse than the higher-priced plasmas'.

One thing you might consider with a budget set is purchasing an extended warranty. I generally don't advise extended warranties, but if it makes you feel more comfortable and doesn't cost as much to get the warranty as it would to buy a brand name, trust your gut. Buying a budget HDTV means you have to do your homework, but remember that THESE PRICES ARE INSANE!!

Check out more insanely priced TVs in Yahoo! Tech's Television Resource Center.