Is the Olympus camera division on the ropes?

Is the Olympus camera division on the ropes? Several sites are reporting they might be forced to forgo their digital camera business. This has of course fired up the comments on various forums. Some in defence and others proclaiming m4/3 is dying.

The situation isn’t helped by Panasonic deciding to change direction.

So what’s the problem?

Well….It would appear to be the investors in Olympus suggesting a new direction. While their latest camera the EM1-X  might be considered an expensive model, somewhere within the rooms and corridors of Olympus HQ it must have been discussed and agreed to release that product at that price point.

It’s interesting that its the investors – reportedly foreign investors – who are asking for change. Does that vindicate the Olympus marketing and production departments? Maybe. It can’t be easy in the digital camera business these days. Despite comments on what camera companies should do from forum users, I think that those very users sometimes forget what they want may not be appropriate for other markets or regions. A few vocal Americans [insert your country here] may not be representative of a global market.

M4/3 may not be the only casualty

I still think that anything smaller than full frame could well be challenged in the current climate. It’s possible, to get some clear product differentiation that Canon and Nikon may give up on their APS sized cameras and cede market share to smartphones.

That would leave Fuji in the APS segment, effectively in a niche. Both in style and sensor size.

Will Nikon continue to produce what is effectively three different ranges of lenses? I’d bet a bag of doughnuts that Nikon will (officially or otherwise) let the DX go. And I say that as an avid DX user. I just hope that they don’t do a CX on it and neglect it to death. Nikon published a road map for their Z series lenses. Let’s hope they have the kahunas to tell us what they might do with DX.

Will other investors want out of the camera market?

If Olympus investors want out, are they the only ones? Will this prompt other investors to think along similar lines and want to change direction away from a declining market?

Let’s face it investors want a return. If that is harder to accomplish in a diminishing market they may very well want out.

That could mean Olympus won’t be the only one in trouble.

It could also mean investors increasingly calling the shots …..