The Seiko Epson EMP-TWD1 home cinema projector with built-in DVD player already gained 40% market share in Japan since it's introduction in Japan last October.

We reported about the Epson EMP-TWD1, which is sold as Instant Home Theater System on Hammacher and Schlemmer before.
Such a compact home cinema solution is of course ideal for the Japanese market, where lots of people have to deal with small living spaces. I guess in the US stand-alone home cinema projectors will continue to dominate the market.

HD-Ready Home projectors have actually become very affordable. Those are interesting alternatives to large Plasma or LCD HDTVs. I researched the low-cost HD-Ready projectors a bit and the Sanyo PLV-Z3 (there is a new Sanyo PLV-Z4, but that one is still selling for over $2,000) looks like a nice choice. Has anybody a better recommendation on a low-cost HD-Ready (1280x720p) home cinema projector? If yes, please email me. Projectors in general gain more market share in Japan, even if large Plasma and LCD TVs get bigger and more affordable.
More details on the Japanese Home projector market on Nikkei Net (Subscription).