Although Onkyo, Pioneer and Elite AV are bankrupt, they lead!

Although Onkyo, Pioneer and Elite AV are bankrupt, they lead!

Over the past two years, we’ve followed Onkyo’s battle for survival, from the potential acquisition of Sound United, the closing of Onkyo USA and the takeover of Klipsch’s parent company Vox, to the company’s bankruptcy just months ago. Last Friday, we received some tragic news when Nikkei Asia reported that Onkyo Home Entertainment had filed for bankruptcy on Friday, May 13 in Osaka District Court. Total liabilities were estimated at 3.1 billion Japanese yen (24 million US dollars). After brave efforts and positive signs that Onkyo might be back in the saddle, it looks like the company will be blasting off into the sunset as Alan Ladd’s Shane, complete with audiophiles Joeys calling his name. The current era has been particularly difficult for the audio industry.

We reported a year ago that Onkyo showed signs of closing the gap between operating costs and profits but unfortunately, none of the “ifs” seemed to go the Onkyo way since then. After being delisted from the Tokyo Stock Exchange last August, Onkyo saw two of its subsidiaries file for bankruptcy last March, including Onkyo Sound Co. Ltd. , responsible for business development in the Japanese audio market.

A long-running decline in Onkyo Home Entertainment

  • October 2019: Sound United’s deal to buy Onkyo/Pioneer fails
  • July 2020: Onkyo USA closes distribution in the US
  • July 2020: Sale of Onkyo/Pioneer AV division to Voxx International, Klipsch’s parent company
  • November 2020: Onkyo goes bankrupt
  • August 2021: Onkyo is delisted from the Tokyo Stock Exchange
  • January 2022: Onkyo introduces new line of AV receivers CES ’22
  • April 2022: Two major Onkyo divisions file for bankruptcy
  • May 2022: Onkyo files for bankruptcy and ceases operations

Onkyo told the Nikkei Asia that it had “tried to keep the business on a smaller scale, but couldn’t prevent the cash flow problems from worsening.” According to Yuji Masaki, head of research at the regional office of Teikoku Data Bank, Osaka said:

“[Onkyo] He tried to survive with various companies such as headphones and earphones, but the actions were halfway. [Their disposal of businesses] It was a step back in timing as well.”

AV market watchers are well aware that Onkyo’s problems go far beyond anything listed here. The company’s downfall speaks more to the changes in the consumer electronics industry itself and the shift during the 2000s away from physical media to software and Internet-connected media consumption and its diversification in how we listen and watch. The challenges felt by the industry were exacerbated by COVID and spread widely Semiconductor shortage That hit Onkyo in particular.

Toru Hayashi, President and CEO of Onkyo Home Entertainment Co. Ltd, documents for his company’s bankruptcy declaration which included very Japan apologizes to everyone for their unsuccessful efforts to get Onkyo back on the right track.

“We sincerely apologize for the inconvenience caused to our business partners, shareholders and related parties. I would like to thank you…”

“This hampered the company’s ability to introduce new products…or be able to offer existing products. Also, the lack of chips eliminated their ability to expand their OEM business, as OEM customers could not get enough chips for their projects, too.

Distinguished audio company

Yes Virginia, there will still be Onkyo AV receivers

The Onkyo we knew, the Japanese company that dates back to 1946 and was mostly owned by the Ohtsuki family will cease to exist. Think of it as the lost soul of the company. It is unlikely that Elon Musk will intervene to save Onkyo from bankruptcy and pay off the debts of the company that it cannot cover. But the Onkyo and Pioneer brands will live on! The company’s audio/video business is owned by Voxx International and has a contract with Sharp to manufacture its AV products. In fact, most consumers, especially those looking for new Onkyo AV receivers, are unlikely to notice a change. Premium Audio Co. is a joint venture of Voxx and Sharp since September 2021 and operates several popular home audio brands including Onkyo, Pioneer, Elite and Integra as well as Klipsch, HECO and Energy amplifiers.

Therefore, home audio fans will continue to see the familiar Onkyo, Pioneer, and Elite panel on AV receivers for some time to come. Warranties will continue to be fulfilled and AV receivers and other equipment will continue to function, provided they can fish out the chips needed for assembly and repair. Who knows, maybe under the Voxx Onkyo will be injected with new life and will continue to live and even thrive in the smaller, more adaptable form the market requires today.

Onkyo out of business? – 2021 YouTube discussion

What do you think? Please share your comments in the relevant forum thread.

pantragestic Posts on October 27, 2021 15:23

Version 7, Publication: 1509984, Member: 96226
As of now, in order to take full advantage of Dolby Vision and fully use your 4K TV with at least 400 nits, you must have a 4K player. What do I know, anyone know of another source that can reproduce HDR in full 4K resolution other than a 4K disc and 4K player?

A lot of streaming services actually have good quality streams with Dolby Vision and “normal” HDR10. From what I can tell, most of the Dolby Vision content is streamed. Netflix uses it a lot, but the quality will not be like the disc.

I only have a few movies from discs with Dolby Vision on them. Forgot any of them.

mdinno Posts on October 26, 2021 11:49

I’m not interested. I just bought a Pioneer SC-LX 704 to accompany my new LG C1 OLED to replace my Pioneer Elite Kuro plasma. I have always been a loyal pioneer. I went with the 2019 model 704. I’m not a gamer so I didn’t care about the 8K/HDMI 2.1 features. Besides being the first generation, it will soon be as obsolete as the first generation of 4K. The 704 is also more efficient and powerful than the 2021 model at this price point, so it was an easy decision.

Oltus Posts on October 13, 2021 21:40

Version 7, Publication: 1509984, Member: 96226
As of now, in order to take full advantage of Dolby Vision and fully use your 4K TV with at least 400 nits, you must have a 4K player. What do I know, anyone know of another source that can reproduce HDR in full 4K resolution other than a 4K disc and 4K player?

4K support via the JRiver player will depend a lot on the optical drive. While I’m always on the lookout for great new movies, most of my collection are old titles in 1080p BHD. But as I said, JRiver developers strive to upgrade it as much as possible as per user demand. Let them know your thoughts and interests!

Oltus Posts on October 13, 2021 21:31

Unfortunately, when there are no more high-resolution BD players with the LX500 zoom, and mines are dying due to a lack of spare parts, then I will have to choose a JRiver player. It’ll take a bit of getting used to the software player’s obvious bug, but Cyberlink has gotten with more features of any BD player I can find – and developers who listen to users. In fact, maybe if at least one brand of a stand-alone operator did the same sales, it would be higher and not be on the verge of extinction.

2022-05-16 08:32:41

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