From the Olympus Website--A little better translation than DPReview

Started Feb 14, 2013 | Discussions thread
Olymore
Senior MemberPosts: 1,166
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Re: Harsh News
In reply to Craig from Nevada, Feb 16, 2013

From what I've read generally mirrorless cameras are cheaper to produce than DSLRs because many of the mechanical components are replaced by electronics which are cheaper and easier to assemble.

That's why they can sell the E-M5 for  $1000.

Olympus could not make any money on their DSLRs previously and DSLR prices are now falling so the chance of making a profit on them is slimmer than before.

The only companies making any profit on DSLRs and lenses are Canon or Nikon and only then because they have huge economies of scale. And Olympus have fewer potential customers than before so the chance of them making a profitably DSLR are almost non-existent.

They may produce one for other reasons. To preserve their reputation/consumer confidence for instance until they come up with a hybrid solution. But it will inevitably lose money.

The huge growth in camera sales since digital started (from the relatively moribund film days of the late nineties) has come to an end.

Sales of serious cameras in first world countries has reached saturation point and growth is only being propped up by the 'new economies' and soon they will reach saturation point as well.

Quite simply  there are not enough keen photographers in the world and previously the market expanded because people with no real interest in photography were buying 'serious cameras'. Now they're using their phones or are happy with what they already have.

Companies like Ricoh and Pentax and to a certain extent even companies like Canon, Sony and Nikon will eventually have to downsize and produce fewer cameras, find other niches to exploit or terminate their imaging businesses.

Whatever happens the amount of money invested in R&D will diminish and cameras will be released less often and will become more expensive, a bit like the film days when you bought a camera and held on to it for ten years.

Having been an Olympus customer for over thirty years I really hope that the Olympus imaging division survives the inevitable downsizing but if I was a betting man....

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