Canon and Nikon rule the DSLR market, but other camera makers are leaving them behind when it comes to the new mirrorless, interchangeable lens camera market. The mirrorless cameras are smaller and lighter than traditional DSLRs, but offer similar picture quality and interchangeable lens functionality. According to a recent report by Bloomberg, this lack of mirrorless camera in Canon and Nikon’s arsenal has resulted in 35 percent drop in their combined DSLR market share in Japan.

On the other hand, Sony with their mirrorless NEX series has doubled their market share in Japan. This has prompted Nikon to join the mirrorless camera race and the company is planning to introduce their first mirrorless, interchangeable lens camera later this year.

There is no ship date decided yet for the new mirrorless Nikon camera, but it will be priced at 70,000 yen – 100,000 yen ($900 - $1,300), which is slightly higher than the current crop of entry-level mirrorless camera. However, both Sony and Panasonic have introduced higher-end mirrorless cameras and it is very likely that Nikon will focus on this category rather than entry-level mirrorless camera market. [Via Reuters]