The World Is Flat

With demand soaring and competition more heated than ever, prices have plunged about 25% over the past year. And analysts expect even steeper drops in the future. Last week, Panasonic lowered the prices of its plasma-screen models by an average of $500, starting what Denny Arar, a senior editor at PC World magazine, calls "the plasma price wars."

For those ready to take the plunge, here's a four-step buyers guide.

1. Decisions, decisions: plasma or LCD?
Flat-screen TVs come in two different formats: Plasma and LCD. Both have their advantages and disadvantages, though LCD screens are edging ahead in popularity, say experts.

Plasma screens, according to Consumer Reports, offer good-quality images whether you're watching HDTV or regular cable. The sets are about four to six inches thick, no matter the screen size. Most of the sets are wide screen (16:9 ratio), with the smallest measuring about 42-inch diagonal. (It's rare to find smaller plasma screens.) Price is measured more by quality than screen size — the cheapest models run about $2,000 (for a 42-inch), while more expensive ones can still top $20,000.

The downsides, however, are significant. Plasma screens use more power, and thus generate more heat than other kinds of TVs. They are also prone to "burn-in" — when a static image, such as a TV network logo or a videogame background, creates a permanent impression on the screen.

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LCD screens, on the other hand, have a wider range of sizes, down to tiny 15-inch monitors that can be used as computer screens. They're usually an inch or so thicker than plasma screens. But unlike plasmas, they're immune to burn-in, and generate less heat. You could pay as little as $500 for one of the smaller screens (say, 15-inch or 17-inch).

But LCD screens also have their bad points. Their pictures are difficult to view from the side and don't always offer great quality when it comes to fast motion — which can spell massive disappointment for sports fans.

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2. Read the reviews
Now that you've decided which kind of screen you'd prefer, it's time to check out what the experts recommend. Picking a flat-screen television isn't as simple as looking at resolution and screen size. PC World recommends you take a look at five factors: contrast ratio, aspect ratio, resolution, video inputs and comb filter type. Consumer Reports goes further — it recommends that you also consider four aspects of picture quality (from HD, DVD, S-video, and antennae/cable content), plus sound quality, ease of use and parts/labor warranty.

For expert reviews, read PC World's guide to flat screens and Consumer Reports. To see how consumers have fared with the product once they brought it home, look for consumer reviews on the AV Science Forum and Epinions.