The good news? Prices for LCD televisions look set to drop 20-30% in the next year. The bad news? The price drops will be most pronounced on sets over 40″ with lower resolutions. Most of this is due to a large supply of these sets and lower demand.
While 42″ plasma sets are still cheaper than comparable LCD sets, that will become a much narrower margin with these reductions. And the larger LCD’s, particularly those with higher definition, are not in such abundance and so will not see drastic price cuts. Just following the laws of supply and demand.
As always, timing when the best time to buy is a no win proposition. You know the longer you wait, the better the technology and price will be. But that will never end, so the best bet is to purchase one when you are ready and see a decent sale going on. There is no perfect answer to that question.