Cameras like the Panasonic GF1 and Olympus E-P1 are starting to make a dent in Digital SLR sales according to new figures from market research company GfK.

GfK Retail and Technology is claiming around 10% of cameras with an interchangeable lens sold in the UK in December were sporting the Micro Four Thirds badge.

The news shows that there is a massive demand for a smaller, more compact camera even though the Micro Four Thirds models available at the time were selling for a premium comparable to an entry-level DSLR camera.

Hoping to boost the market further, Olympus has this week announced that it's new entry-level model, the E-PL1 will be available for £529 and in the shops in by the end of March.