GX1 50% price drop in under 10 months

IcyVeins wrote:

http://www.amazon.com/Panasonic-DMC-GX1K-Compact-System-14-42mm/dp/B00604YSNK

Is this a record price drop for an ILC? $799 to $399 in a little over nine and a half months and it's still technically a current model. It is now even cheaper than the G3 which is six months older and in some ways a worse camera; it has the EVF and swivel screen but is less compact than the GX1 and has a few less features and manual controls. The GX1 has slightly better IQ especially in JPEGs and yet the G3 kit is still going for $549.

So what is the cause of such a steep price drop? Even stranger is that Panasonic said at the time of launch that they G3 was a mass market camera and the GX1 wasn't. Meaning they were expecting to sell more G3s. So it is hard to imagine that they overproduced the GX1. How low could we possibly see this camera go, down to $299?