"Consumers especially shunned high-end TVs with 3-D and Internet connectivity."

"Best Buy did report strong sales of smart phones, e-readers, tablet computers such as Apple's (AAPL) iPad and motion-controlled gaming systems like Microsoft's (MSFT) Kinect. But that wasn't enough to offset the declines in the big categories of televisions"

http://www.investors.com/NewsAndAnalysis/Article/556827/201012141915/Best-Buys-Q3-Disappoints-As-TVs-Notebook-PCs-Lag.htm

Well it looks like sony might be in trouble here since they sell both Internet connected TVs and 3D TVs

Best Buy drops most in 8 years after cutting profit forecast

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101215000615

I thought Best Buy would be doing better since CIRCUIT CITY went out of business

The issue is two-fold:

1. People don't want to wear 3D glasses in their living room. This is the very reason why 3D TV didn't happen sooner. 3D is a luxury for the theaters only, and only once in a while. When TVs come out that interpret the 3D graphics without the need for wearing glasses, people will warm up to the idea. Also, people are still or recently have bought HDTVs, and are reluctant to go out and make another big TV purchase anytime soon.

2. Most people have a device connecting their TV to the internet. Most people have a gaming console for themselves, or their kids, etc. Each of the 3 current gen consoles have online capabilities. I've shown my friends YouTube videos on my OOOOLLLLD 32 inch tv via the Wii. For those without consoles, they may have something else, like a Roku or other internet-capable device. Internet TV is a good idea, but not a good idea right now.

Yeah pretty much this, plus the fact that DVD and Blu-Ray will probably keep losing market share to online streaming (Netflix and such). Not a good time to be an electronics retailer (or a TV maker for that matter, at least the ones that bet a lot on 3D).

The problem with 3D is that unless you are doing it on a 70 inch screen with THX surround sound and lights out, its not really that immresive or impressive.

Combine that with the lack of content and the locking out non hdmi 1.4 content practices by sony and rest...with the fact that TVs sell at a premium with aditional glasses at 200-300 dollars per pack...and you got yourself a product which will fail to sell.

They just need to scrap this 3D cash grab which started this year and start over...or step aside and let Nvidia, RealD and Texas Instruments DLP do it as they are the only ones doing it properly.

@raze - very well put

@disolitude - I have never seen a 3d tv, you are the most informed on the subject so I will take your word for it

Thanks Pizza!

I've just realized how best to simplify the current situation with 3DTV: 

Current 3DTVs are like LaserDiscs - Great concept, bad execution, poor adoption rate.

3dTVs in the future that can translate the 3D without needing glasses will be like DVDs - everyone will want/have one.

So Sony Corp is going to have a bad financial quarter for the holidays not even including gaming.  What a mess ...

well they said e-readers were popular and sony sells those.

So too early to say, but looks like they will be hurting a bit

Excuse my ignorance but what are they doing differently and how is it better? ( i am sure they are but i dont know what exactly)

TV's were their big gamble this holiday, though.  I just don't get their decision making as tons of people saw this coming.  3D and internet are just not enough for people to fork out crazy money for a tv after they just did that in the last 5 years for HD.