It's a little surprising that Australia, a country of only 20 million population, is the fourth largest national market for Pioneer Electronics. But that's what Pioneer Australia Managing Director Yasuo Sakuma claims in an interview that appeared at the Smarthouse web site on Wednesday -- and that lends a certain level of credibility to his comments about the future direction of the Japanese electronics company after last week's decision to shut down its plasma display manufacturing operations.

Sakuma noted that Pioneer will shift to Kuro-branded LCDs built by Sharp and new Kuro plasma panels built by Panasonic. He said Pioneer will continue to sacrifice volume for profitability.

Sakuma indicated that when Kuro LCDs roll out sometime late this year, they will be in the sub-50-inch range, with 32-, 42- and 46-inch models likely. On the plasma front, Sakuma indicated that Pioneer will continue to offer both 50- and 60-inch Kuro models.

"We have one of the best display engines in the world and our Kuro plasma display has won numerous awards because of this engine. Now we are working with both Panasonic and Sharp to transfer this technology into both our LCD TV's and our new thin plasma TV's. The Pioneer display engine is key to our success."

Sakuma also mentioned that Pioneer is considering establishing Pioneer-branded retail outlets, though for a company that seems hellbent on reducing costs and increasing margins, this would seem somewhat counterintuitive.

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