The new M-E body is Leica's answer to a low-cost M camera. Considering the price, we don't know if we'd actually call it a "budget camera" though. What separates it from the M9 and M9-P that came before it? Not much. Basically the frame preview lever and USB ports are missing and it gets an "anthracite grey" paint job with chrome controls. The price is still rather steep at $5,450 USD. But what else can we expect?

For starters, the M9 and M9-P are toast (as in, will no longer be produced as-is) come two weeks from now. Furthermore, Stefan Daniel, says that Leica will never release an affordable compact system camera. Read about these interesting revelations over on BJP.

"[The new M-E] is the first answer to compact system cameras," says Leica CEO Alfred Schopf in an interview with BJP and Amateur Photographer. "The M is a system camera. On the one hand we want to honour this idea of a [compact] system camera, on the other hand we want to stick to our heritage. And the M camera size with its full format sensor makes a lot of sense."

The comment comes as users have clamoring for a real-entry level interchangeable lens compact camera. Yet, Leica believes such a system doesn't make sense for the brand, especially if it means doing away with fixed lenses. "A fixed lens makes a lot of sense," says Schopf. "If you look at the X2, we could also consider that [it's a compact system camera] and maybe [we could release a model] with a zoom lens."

Stefan Daniel, the head of product management at Leica, goes one step further, claiming that Leica will never release an affordable compact system camera. "There's no way that Leica will launch a below-£1000 compact system camera," he says. "We would immediately be in the shark pond with everybody else."

He adds: "Of course, there's room for a broader camera portfolio but we always have to stick to our core brand values and if we tried to challenge the big guys, we're still too small to go into a price war with these companies. We're not going to do that."

Leica's strategy, says Daniel, is to keep prices quite stable to give its customers a sense that the products they bought have real value. "We don't want to discount a product after six weeks like it is the case with many of our competitors."

Schopf adds that Leica will always find itself in a position where people will say that its products are too expensive. "But on the other hand, 55,000 customers of the M system say a different thing. And I'm sure that the M-E will find its market."

Schopf's comments come as Leica has revealed that the M-E will replace the M9 and M9P cameras in the next two weeks.