In a media release, the company explains it has been implementing restructuring measures mainly to improve profitability in the display business since 2008.

The company says recent market conditions have changed far more than initially anticipated, and Pioneer has decided to withdraw from the display business after concluding that there are no prospects for improving profitability under current conditions. Pioneer will terminate all in-house display product development and withdraw from the display business by March 2010. However, it will continue to provide after-sales services after the withdrawal.

“Overseas, we have started to streamline our sales structures and have decided to close plasma display production facilities. Plans call for ending production at our US and UK display production facilities in April and February 2009, respectively.

“In the optical disc business, we are considering measures for improving profitability, including forming a joint venture.”

Looking ahead, Pioneer will develop a home electronics business centered on three areas, namely audio products, DJ equipment and cable TV set-top boxes.

“Pioneer has been affected significantly by dramatic changes in economic conditions since the fall of 2008—an impact that has far outweighed the benefits being generated by the aforementioned restructuring measures.”

Pioneer is now forecasting a record net loss for fiscal 2009, the year ending 31 March 2009.