TOKYO (XFN-ASIA) - Pioneer Corp will stop developing DVD recorders on its own, as stiff price competition is causing the firm to lose money in this segment and is looking to link up with Matsushita Electric Industrial Co to cut costs, the Nihon Keizai Shimbun reported, company sources said Saturday.
Pioneer plans to continue developing next-generation DVD recorders based on the Blu-ray format, promoted by Sony Corp and Matsushita, by purchasing key microchips and software from Matsushita, the business daily said.
In 1999, Pioneer became the world's first company to commercialize DVD recorders, and is currently the fourth-biggest supplier of the devices.
The company is trying to eliminate unprofitable businesses and focus on its lucrative car-navigation equipment and other vehicle-electronics operations, the sources told the newspaper.
Pioneer posted a group net loss of 84.9 bln yen in the past year through March. Its DVD recorder shipments declined 2 pct on the year to around 930,000 units.
The huge loss in this segment, believed to have reached about 10 bln yen, has been the single biggest reason for the decline in Pioneer's earnings, according to the report.
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© 2006 AFX News
