From Vnunet:
The development of relatively cheap 5-megapixel compact cameras has effectively ended the long running ‘megapixel war’, leaving manufacturers to focus on features rather than resolution, industry sources have told vnunet.com.
“Five to eight megapixels is already sufficient for almost all users,” said a spokesman for Premier Image Technology, one of the world’s largest digital still camera makers.
He added that competition has forced prices for the cheapest 8-megapixel models below $300, and even manufacturers of low-cost compact models will soon begin to add features such as anti-shake and more powerful optical zooms to attract buyers.
Half of all US households own a digital camera, and markets in western Europe and Japan are similarly saturated, according to a recent report from Taiwan’s Market Intelligence Center.