According to this press release from Konica Minolta, they are exiting the camera and photofinishing businesses.

…in today’s era of digital cameras, [...], it became difficult to timely provide competitive products [...]
skipping
1. Camera Business
In camera business, we have reached an agreement with Sony Corporation(Sony), [...] , to jointly develop digital SLR cameras in July 2005. In order to [...] maximize possibilities of the [...] technologies accumulated through development of SLR cameras in the years to come,[...] it was best to transfer assets concerning camera business to Sony.[...]
In this relation, we have decided to withdraw from camera business,
such as film cameras and digital cameras, within Konica Minolta Group as of March 31, 2006.
Sony is planning to develop digital SLR cameras compatible with [our lens systems]
2. Photo Business
In today’s shrinking photographic market represented by color film and color paper, [...] it is quite difficult to maintain profitability in this field, and we have decided to withdraw from photo business.
For color film and color paper, [...] , we will [...] cease our color film and color paper production by the end of fiscal year ending March 31, 2007.
For minilab business[es], we will cease production of the system by the end of fiscal year ending March 31, 2006[...]
3. Personnel Management
As a part of Konica Minolta Group’s restructuring, [...] we have decided to reduce worldwide Konica Minolta Group employees by 3,700 from the current 33,000 including early retirement offering by September 30, 2007.
…
…we will remain powerful…
What’s up with remaining powerful? Lost in translation I fear.
Wow ! With Kodak discontinuing their film camera offerings a few years ago, Nikon severely restricting their presence in the film space last week and now this. Fine Art photographers are in for an uphill battle as the options will become increasingly boutique and less mainstream. I suppose this is a good thing for dedicated artists, and a bad thing for the casual hobbyist that happens to still dig film.
Anyone want to buy my Hexar Silver ? Marvelous camera…
Update: I decided to dig up a link on the Hexar on the official site and, surprise surprise, this snuck up on me:
Dear Konica Minolta Consumer,
Effective October 1, 2005, Konica Minolta Photo Imaging Canada, Inc. will cease its operations in the Canadian market only. All other world-wide Konica Minolta subsidiary’s and companies will remain operational.
[..]
Sales and distribution of Digital/35mm cameras, film scanners, binoculars, photo meters, and their accessories will however cease in Canada. [...]
While we have made every attempt to execute these transitions with minimal disruptions we thank you for your patience in the event your responses are delayed.
Minimal disruption?? : Nice. Exiting a market and entire country can hardly be called minimal disruption, unless you consider that Canadians make up roughly 0.5% of the global population (but substantially more of the addressable market). Blah