Kyle Baxter, responding to The Last Kodak Moment:

But wait! Kodak could have out-innovated their competition, made dramatically better digital cameras, and then charge higher margins. That only works, though, if the other option isn’t already good enough—which digital cameras very quickly became. For most people, the difference between eight and five megapixels or a much better lens were negligible, because all they wanted was an affordable camera that took decent photos.

Kodak’s real problem was not that they didn’t move quickly enough or innovate enough in digital cameras. Their problem was that they were in the digital cameras business, which had little future.