The firm said that despite its best efforts, the "extremely severe digital camera market" was no longer profitable.
The arrival of smartphones, which had shrunk the market for separate cameras, was one major factor, it said.
It had recorded losses for the last three years.
The Japanese company made its first camera in 1936 after years of microscope manufacture. The Semi-Olympus I featured an accordion-like fold-out camera bellows, and cost more than a month's wages in Japan.
Olympus Corporation, however, will continue.
The company never stopped making microscopes, and has turned its optical technology to other scientific and medical equipment such as endoscopes.