It was a matter of time. They were focused on m4/3, which was a good system. But phone technology evolved quickly.
Most pros or prosumers go for the higher-end APSC or Full Frame lineups. In my experience, they don't take the m4/3 stuff seriously.
For regular folks, m4/3 is too expensive. For the same price, they can use their phones (or buy an APSC camera). The quality is negligible thanks to all the software enhancements the phones do.
Panasonic is at least focused on video. That helped their market a bit. But who knows how they'll do in a few years? They've entered the saturated full frame market. Pentax is probably in trouble too. They don't even have mirrorless offerings.
Actually it is APS-C that needs to go. That format does not offer significant IQ upgrade compared to M43 and has not significant size benefits compared to FF.
No matter how good phones are there is still a clear advantage M43 has over them.
This is a huge misconception. From my perspective, any camera (including M43) made after 2014 is more than good enough for most "regular folks" looking to level up from a smartphone. Yes, the top end stuff can be expensive, but regular folks shouldn't be buying that stuff until they're ready to get to the next level.
I bought most of my m43 gear as open box or used. The same with my lenses. You can get something like an E-PL6 body for a couple of hundred bucks, and it takes great photos.
pro tip: buying camera gear from Japanese sellers off eBay is a good way to get stuff, because they're super trustworthy and the gear is in the exact condition they say it is.
Most pros or prosumers go for the higher-end APSC or Full Frame lineups. In my experience, they don't take the m4/3 stuff seriously.
For regular folks, m4/3 is too expensive. For the same price, they can use their phones (or buy an APSC camera). The quality is negligible thanks to all the software enhancements the phones do.
Panasonic is at least focused on video. That helped their market a bit. But who knows how they'll do in a few years? They've entered the saturated full frame market. Pentax is probably in trouble too. They don't even have mirrorless offerings.