FULL STEAM AHEAD, LUMIX

Assuming that Panasonic wants to remain in the camera industry, then it would be very smart for them to double down on M4/3. They would inherit almost all of Olympus' customers, effectively doubling their market share, The additional volume would help them lower their costs and increase their likelihood of profitability.

If you take a hard look at their imaging division they really only have a few key assets:

• M4/3 
• Some very nice large sensor compacts (current LX, FZ models)
• Some pretty nice rugged compact cameras
• L-Mount

They also have this Professional Video cameras (well regarded, and probably very profitable, but NOT part of their imaging division)

I really don't believe the L-Mount will ever catch on. It has two big problems. DFD isn't as fast as PDAF used by Sony, Nikon and Canon FF MILC, and their pricing really isn't competitive enough. They may be using a Leica mount, but they aren't Leica so they cannot command premium prices for Panasonic branded goods. Plus, they were pretty late to the FF MILC party, having allowed Sony to get a big head start and waiting until Nikon and Canon jumped into the ring.

On the other hand, having Sigma in the L-Mount Alliance was sheer genius. Not for their cameras but for their lenses. The L-Mount still could be a very positive asset for Panasonic, but I doubt the volume would be enough to sustain their imaging division. They need more.

Those large sensored compacts are also a key asset for them. Olympus had none of those, so their main competitors in this area are Sony and Canon.

The real problem with rugged compacts is that they really are rugged. They just never break or wear out. And their users really aren't looking for cutting edge imaging. If you own a Panasonic TS1 or an Olympus TG1 you probably will never upgrade to a newer model. And this explains why there are so few new models in this category.