That's still blind speculation as there are no sales figures to support the arguments. How many of each model did they sell? Which models were profitable and which were not? With current sale to JIP perhaps we will find out (see which models they cut).The market is tough but
t this is argument is pretty absurd
here’s a much more reasonable argument and insight
http://www.sansmirror.com/newsviews/2020-mirrorless-camera/so-why-did-olympus-fail.html
It's suggesting a 4/3" compact would have saved the day, but compacts were the ones that lost the most sales in the camera market. Also it even pointed out when Olympus was exclusively selling smaller M43 cameras, the sales were plateaued and started dropping. They were also losing money during that time (only FY2010 had a modest profit of 1.89%). That contradicts the notion that small cameras would have saved the day. From the outside, the only two camera releases that coincided with profits was the E-M5 II and the "overpriced" E-M1 II.
The GM series seemed instructive that people weren't going to pay a premium for smaller cameras.
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