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How Kodak Squandered Every Single Digital Opportunity It Had @ Mashable

"It’s no exaggeration to say Kodak invented digital photography. In 1975 Kodak engineer Steve Sasson created the first digital camera, which took photos with 10,000 pixels, or 0.01 megapixels — about a hundredth of the resolution that low-end cameraphones have today. Kodak didn’t stop

there; it worked extensively on digital, patenting numerous technologies, many of which are built into the digital cameras of today. (Kodak’s primary asset is its intellectual property, which some estimates value at $2 billion.)

“If you want to point back to the most pivotal moment that caused this,” says Hayzlett, “it was back in 1975 when they discovered the digital camera and put it back into a closet. Some of the same people are still there. I actually had an executive from Kodak come up to me last week and say, ‘I think film’s coming back.’”
 
In 1995 the company brought its first digital camera to market, the DC40. This was years before many others would get into the digital game, but Kodak never took advantage of its early start. Philisophically, the company was steeped in the film business, and to embrace digital meant cannibalizing its own business. Others quickly filled the niche, and Kodak didn’t fully rev up its digital business until 2001, when it launched the EasyShare line of point-and-shoot cameras.
 
“It’s a classic business strategy problem,” says Miriam Leuchter, editor of Popular Photography. “Their whole business was tied up in film and in printing. So while they’re developing this business technology, there’s not a big incentive to push it very far.”
 
While Kodak was slow to get into the digital game, it wasn’t the only one. Perennial rival Fujifilm tiptoed as well, not coming out with the FinePix line of point-and-shoots until 2001, so Kodak still had a chance. However, despite having created the category, Kodak digital cameras weren’t anything special. They didn’t have any standout specs or features, and their designs weren’t as eye-catching other manufacturers’ models.
 
“They just weren’t as good,” says Leuchter. “And the cameras themselves weren’t that appealing. Consumers like products that look cool, and [many] Kodak products just do not look cool. They’re bulky, they’re hunky, they’re dorky looking. They had a couple of good EasyShare cameras a couple of years ago, but they weren’t as good as a lot of the point-and-shoots from other companies.”"