According to Austin, Texas-based market research firm DisplaySearch, LCD TV prices will drop 15 to 20 percent on average below last year’s prices, while plasma sets could sell for 20 to 25 percent less than at this time last year.

You’ll find even bigger bargains in certain size categories. For example, DisplaySearch predicts the average selling price of 40-inch and larger LCD sets could drop by 25 to 30 percent. As a result, the average price of a 52-inch 1080p set will drop from about $2,800 in the fourth quarter of 2007 to just under $2,000 by the end of 2008, while a 46- or 47-inch 1080p sets will fall from about $1,800 to just over $1,350. The average price for a 40- or 42-inch 1080p set will drop from nearly $1,400 at the end of last year to $991 this year. Those looking for a smaller set could also be in for some bargains, as DisplaySearch sees prices falling about 23 percent for 32-inch TVs, and 21 percent for 26-inch models.

On the plasma front, look for price cuts in the 30-percent range overall, though a 50-inch 1080p set will drop about 36 percent to under $1,600 on average, down from about $2,500 last year, according to DisplaySearch. Another firm, Portland, Oregon-based Quixel Research, sees even more aggressive pricing during Black Friday promotions, with major brand sets of this type selling for $1,500—head to head with 52-inch LCD 1080p models—and secondary brands falling as low as $1,000. During 2009, Quixel forecasts, prices of 58-inch plasmas will fall below $2,500.

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