Olympus abdicating entry level ILS market?

markintosh13 wrote: Is there anything to be gained by fighting it out on the low end?

I doubt it.The P&S wars are over - and everybody lost.

Here lies the problem with your over simply analysis. 1. A Low-End M43 isn't a point/shoot. While a retailer only makes money on 1 transaction in a point/shoot sales, a retailer stands to make Multiple Transaction in a "Low-End" System camera sales.

• Camera body + kit lens
• UV filter for that kit lens
• more powerful external flash
• a Portrait Lens (olympus 45mm f/1.8)
• a 2nd battery is a must with mirrorlesss camera

That's 5 transactions you can easily push for during the 1st purchased. In the near future, the buyer will likely suffer from G.A.S (gear acquire syndrome) and upgrade their camera, upgrade their lens for fancy PRO 12-40mm f/2.8 lens. My point is that having a LOW-END M43 CAMERA is vitally important to the growth of Micro43 as a whole. Abandon the Low-End M43 = Death of M43 in the near future.

A retailer once told me that when catering to a niche market, especially one that is shrinking, own the high end, build the cachet of your brand and service the heck out of your customers.

Except you're forgetting the Competition! A Full Frame Sony A7 can be have around $1200 new/$800 used. A sensor that is 4X's bigger than M43 and capture 4x's more lieght, produce (imho) 4x better bokeh. Sony A7 is a hot seller, even your own M43 MOD is shooting with one

Don't write off the Canon yet. Canon 70D has no faults. It is the 1st DSLR that can truly compete against M43 in Video Tracking AF (something most DSLR struggle to do). In action, 70D PDAF is far more reliable, and all this can be have for around $1200.

Canon is also assaulting the Low-End market with a refurbished Canon SL1 + 18-55 STM lens + Canon 1400 point/shoot for just $324!

http://www.canonwatch.com/hot-deal-refurbished-canon-rebel-sl1-18-55mm-stm-powershot-a1400-324/

Canon is sacrificing the profit margin on a SL1 to locked the new user into their System, away from Micro43, or other mirrorless competitor.  @$324, I admit, I find it nearly irresistible.