Casualties in the megapixel wars


Seriously: how long did you think camera companies could churn out higher- and higher-megapixel cameras before consumers became fatigued with it all?

They're figuring out that a new 12- or 14-megapixel camera isn't a necessity when jobs, hours and salaries are getting cut.

That 6- or 8-MP camera most of us bought a year or two ago will do fine, at least until the recession moderates.

As a result:

  • Ritz Camera filed for Ch. 11 bankruptcy protection this week. Hundreds of stores, stocked with Fuji, Nikon, and Olympus cameras that no one's buying. Most Ritz stores were mall-based, within easy clobbering range of the Target or Best Buy across the parking lot. If you bought a camera from Ritz, I hope you didn't pay extra for a Ritz warranty.

  • Ritz's court filings say they owe Nikon USA more than $20 million. That kind of liability isn't going to make things easy at Nikon. Take good care of that D90 or D300; customer service may get whacked.

  • Olympus downsized a portion of its U.S. sales and technical staff this week. The last Olympus digital camera I adored was the C-5060. Today's crop of pocket Olympus models have a few interesting bells and whistles. But no one raves about the quality of their photos, and it's all about getting great photos.

  • Kodak's 3,500-4,500 layoffs by mid-year have a lot to do with the recession, but fewer shoppers in fewer retail locations don't create an optimal situation for the inventors of the digital camera.
Bottom line: I'd expect the digital camera business to re-set in 2009. Slower shipment of the new models announced at CES and PMA, in order to preserve pricing. That may mean more deals on current inventory, but I wouldn't be the first person in line to buy a new Canon D10.

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