Just a year ago, 3-D technology was seen as a much-needed catalyst to lift sales of expensive new TV sets and a possible answer to the unrelenting decline in prices. But already, manufacturers are reverting to hefty price cuts on 3-D sets to lift sales.

The models initially sold at several hundred dollars above other premium, high-performance sets, such as high-definition models. That gap is shrinking.

For the world’s top TV brands, the plunging prices on 3-D models are a disappointing but not entirely surprising development in the cutthroat industry. In recent years, the industry has introduced a host of innovations for liquid-crystal and plasma display sets, making them slimmer, brighter, and more energy efficient. But those improvements have done little to slow annual price declines of about 20%.

Average TV-set prices across the board have continued to plummet this holiday season amid lackluster demand. The average selling price of a 40″ to 44″ high-definition LCD set with 1,080 lines of resolution will be $684 in North America during the final quarter, down from $719 a year earlier, according to research firm Display Search. Low prices for entry-level sets at the beginning of the holiday season have gone up slightly because inventories thinned out.

Meanwhile, prices on 3-D models have fallen 40% to 50% on average since the first ones were introduced in March, Display Search said. The firm in October said it expects 2% of all flat-panel TV sets shipped this year to be 3-D compatible, down from a July forecast of 5%.

Manufacturers scrambling to clear out inventories of high-end TV sets before the arrival of next year’s models are expected to heap further pressure on prices.

Prospects for 3-D TV are expected to be one of the hottest topics at this year’s Consumer Electronics Show, which kicks off Jan. 5 in Las Vegas.

Hiroshi Yoshioka, the head of Sony Corp.’s consumer products and devices group, said the company’s discounts on 3-D models are akin to what it is offering on other models. But he said it is becoming less costly to add 3-D as a feature. “It won’t cost that much money to incorporate 3-D this year and next year,” Mr. Yoshioka told reporters on Monday. “Eventually, it will become just another feature on the TV.”

The prices of active-shutter glasses needed to create the illusion of depth in this generation’s high-definition 3-D television sets can be made for as little as $15, after costing about $100 earlier this year.

Manufacturers and retailers have tried to spark demand by bundling extra 3-D glasses and throwing in add-ons such as videogame consoles and Blu-ray disc players, but so far the promotions haven’t captivated consumers.

Samsung Electronics Co., the world’s biggest TV maker by sales, sent a jolt through the industry in the fall when it started offering at warehouse retailer Costco Wholesale Corp. a $900 rebate on a bundle that included some movies, two pairs of glasses and a 55-inch, ultrathin 3-D set with a Blu-ray player, bringing the total to less than $3,000. The TV alone is listed at $3,400 on Samsung’s website.

“The industry got caught up on itself and misjudged its value to consumers,” said Paul Gray, a research director at DisplaySearch. “Very definitely, the industry has to chew its way though the inventory.”

Frank DeMartin, vice president of marketing for Mitsubishi Electric Corp.’s North American arm, said he expects all manufacturers to solve the glut by slashing prices yet expressed confidence that 3-D eventually will take hold. “The situation will take care of itself, but there will be some pain for us in the process,” he said.

There have been some pockets of life in 3-D TV. Amazon.com Inc. said its two top-selling big sets last week were 3-D models.

There are several factors holding back sales of 3-D sets elsewhere: Shoppers believe the sets are too expensive, consumers don’t want to wear 3-D glasses, many people don’t know whether they can watch regular 2-D content on 3-D sets (they can) and there isn’t enough compelling content in 3-D. Walt Disney Co.’s ESPN offers a 3-D channel, but 3-D content otherwise remains slow to develop.

At a Costco in Houston on Monday, Yung Koo exited the store unconvinced that paying a premium for a 3-D set is worthwhile. “Why in the world would anyone do that right now?” the 73-year-old asked. “The prices are dropping by hundreds of dollars every month, and there’s hardly anything to watch in 3-D anyway. It would be a complete waste of money.”

Best Buy Co. sounded a warning on 3-D last week when the chain reported surprisingly weak results in large part because of disappointing TV sales. “I think there was confusion about 3-D early,” Best Buy Chief Executive Brian Dunn said in a conference call.

Best Buy made a big bet on 3-D and Internet-enabled TVs this holiday season, expecting consumers to embrace the models over entry-level television sets. But mass merchants such as Target Corp. heavily discounted less-expensive sets on Black Friday, and Best Buy was left in the lurch.

Best Buy estimated that it finished the quarter through November with its total inventory 8% above the same period last year, largely due to a stockpile of TV sets of all types. It expressed confidence it would be able to sell the sets by the end of January, when the Super Bowl provides a reason for TV purchases.

The current sluggishness for 3-D isn’t expected to reflect prospects for the technology’s long-term adoption, however. By 2014, DisplaySearch expects 41% of television sets to be 3-D models.

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