An article floating around several news sites including Pacific Business News is that Nikon are about to stop producion of their 35mm compact camera range and go all digital. The Tokyo-based Nihon Keizai Shimbun broke the story from company sources in its Thursday editions. Though the company said no decision has been made yet, the newspaper said production is being halted and shipments to stores will stop in a few months.

Click here for the original article at Pacific Business News

UPDATE: Nikon posts press release denying rumour

Press Release:

Comment about a newspaper article on our film compact camera business in Japan

An article appeared yesterday on a Japanese daily newspaper that Nikon would withdraw from its film-based compact camera business in Japan. However, we affirm that we do not currently have such plan as this article reports.

Our film compact camera business still remains sizable although their sales shows a clear contrast to our rapidly expanding digital camera business. Our Japanese photo dealers will continue selling Nikon film compact cameras.

We apologize to our customers and photo business partners for any inconvenience eventually caused by this article.