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Much like the auto industry of America, Japan electronics industry is in need of some serious help.  With overall tech sales plummeting to all-time lows through the holiday season and post holiday season sales just as bad, consolidation may be the answer that Japan needs.

Many problems stem not just from the poor global economy right now, but from things such as too many companies, the Japanese yen performing poorly particularly against the Korean won, and some poorly performing supposedly hot items like the PS3.

Although some companies are posting large sales numbers and making attempts to drive the market, it simply doesn’t seem enough.  And despite Panasonic’s recent agreement to work with a struggling Sanyo, some like former Sony CEO Nobuyuki Idei see this step as potentially producing even more problems.

Potential solutions for Japan’s electronics industry include more technology that produces consistent streams of revenue even after purchase, more intuitive technology, a consolidation of companies and technologies via buyouts and mergers, the government stepping in and working with Korea to solve the struggling yen problem, and work with China and India in an effort to strengthen the Asian electronics market overall.

These solutions individually may not solve the problem, but if Japan doesn’t do something fast these problems could easily go the way of the American auto industry.  Who will bail them out?

Source: [FT.com