Olympus and Panasonic will be releasing a new standard of cameras known as Micro Four Thirds. No so much DSLRs in a smaller package, but rather better compact cameras with interchangeable lenses. Here’s the press release:

OLYMPUS AND PANASONIC ANNOUNCE NEW MICRO FOUR THIRDS SYSTEM STANDARD

Tokyo, 5 August 2008 – Olympus Imaging Corporation (Olympus Imaging) and Matsushita Electric Industrial Co., Ltd. (Panasonic) today announced joint development of technologies and devices for the “Micro Four Thirds System standard,” a new standard that extends the benefits of the Four Thirds System standard for interchangeable lens type digital camera systems by enabling dramatic reductions in size and weight. Under the terms of an agreement between the two companies, they will work jointly toward commercial production of significantly lighter and more compact interchangeable lens type digital camera systems.

The global market for interchangeable lens type digital SLR cameras is growing steadily, but still only accounts for a 7% share of the total digital camera market. Considering the much larger share held by interchangeable lens type SLR camera systems when film was the dominant imaging medium, it seems that there is still ample room for sales growth in the category. But compact digital cameras continue to offer an expanding range of features and performance, and market surveys indicate that customers choose compact models because they find digital SLR cameras to be “big, heavy, and difficult to operate.”

Recognizing this market trend, Olympus Imaging and Panasonic have introduced products based on the Four Thirds System standard, and have led the industry in bringing features such as Live View and contrast-detection autofocusing systems to interchangeable lens type digital camera systems.

Now, Olympus Imaging and Panasonic are expanding the potential of the Four Thirds System standard even further, enabling the development of radically more compact and lightweight interchangeable lens type digital camera systems based on the Micro Four Thirds System standard. Together with the existing range of Four Thirds System products, the new range of Micro Four Thirds System products will enable customers to enjoy true interchangeable lens type digital camera system performance.

When compared to the Four Thirds System standard, the primary distinguishing characteristics of the Micro Four Thirds System standard are*:
1) Approximately 50% shorter flangeback distance (mount-to-sensor distance)
2) 6mm smaller lens mount outer diameter
3) Electrical contacts in mount increased from 9 to 11

The Micro Four Thirds System enables users to enjoy the high image quality benefits of the Four Thirds System’s 4/3-type image sensor in a much more compact camera body, and also take advantage of significantly more compact lenses, particularly in the wide-angle and high-power zoom range. The Four Thirds System offers compact, lightweight performance, and the new Micro Four Thirds System will take this even further by making it possible to develop ultra-compact interchangeable lens type digital camera systems unlike anything seen before. The new Micro Four Thirds System also incorporates a greater number of lens-mount electrical contacts, enabling support for new features and increased system functionality in the future. In addition, users will be able to mount their existing Four Thirds System lenses on Micro Four Thirds System bodies via an adapter.
* Image sensor diagonal dimensions are the same for both Four Thirds System and Micro Four Thirds System standards
Moving forward, Olympus Imaging and Panasonic will jointly develop relevant technologies and devices for both Four Thirds System and Micro Four Thirds System standards, and will develop and introduce standards-compliant products in accordance with their respective business strategies.

While continuing to develop Four Thirds System interchangeable lens type digital camera system products, Olympus Imaging will also develop a range of Micro Four Thirds System lenses and accessories, and Micro Four Thirds System camera bodies that are even smaller and slimmer than the light, compact, and widely acclaimed Olympus E-410 and E420.

While continuing to develop Four Thirds System interchangeable lens type digital camera system products, Panasonic will also develop a new generation of compact, lightweight, interchangeable lens type digital camera system products, including ultra-portable camera bodies, interchangeable lenses, and related system accessories.

Whilst I can’t see myself investing in something like this, I do believe this is a good idea for photography enthusiasts who are still undecided about dumping their hard earned cash into a DSLR, not to mention the lenses too. Of course a standard like this can never compare to a full DSLR, but the thought of a better quality camera in compact size could potentially be useful for existing DSLR owners, such as a backup camera. Interchangeable lenses should mean that these Micro Four Thirds bodies would stick longer than your average compact or bridge camera, extending the life through lens purchases. Another plus would be to use an adaptor and purchase DSLR lenses to use with the Micro Four Thirds body, and then eventually those lenses can be taken to a DSLR should the customer follow that route. Although I have my doubts over the use of an Electronic Viewfinder (EVF), previous experience with such tech hasn’t been that impressive, so it’ll be interesting to see what Olympus and Panasonic come up with, and whether or not Canon and Nikon would follow suit.