Nikon to increase digital production, exit film

"Kimura said Nikon had no plans to stop producing film SLRs, but that it may next year start considering pulling out of the film compact camera business due to a sharp plunge in demand."

"There is still the matter of timing, but eventually we will have to dissolve this business," Kimura said. "There really is no region in the world where you can do good business in compact film cameras anymore."

Article here.