What was Nikon thinking with their mirrorless offering?

The Nikon 1 has a smaller sensor than micro 4/3 and quite a bit small than the APS-C that Sony puts in the NEX. I'm also noticing there's a grand total of four lenses for it… Is that right? I can't imagine why anyone would buy this over a m4/3 (Panasonic, Olympus) or the Sony NEX. Did they just put this out so they could say they have a mirrorless?

Added (1). Any newcomer to the mirrorless world could also use the Sony E mount since Sony made it open. If Nikon had gone that route they might not have sold many bodies but the lenses would have flown off the shelves.

Yep i think they just put it out there because they wanted a mirrorless system like all the other brands! Panasonic, sony, olympus etc are all doing well with these sorts of cameras as they are compact and simple so amateurs buy them! They are just joining in with it!

I was delaying the purchase of a micro four thirds complement to my Nikon DSLR until this announcement, and now I'm just confused. Other than the ability to swap lenses and some video gimmicks, how is this better than a Canon S95, S100, G10, G11, G12 or Nikon P7000? I think they've handed Canon a huge gift with this: they can sit back, judge market reaction, and consider their own mirrorless, potentially four thirds compatible, HD video-capable offering that could replace the Gxx series as the defacto DSLR companion. I know I want to see what Canon does in response to this.

Because the camera companies are constantly on a 'catch up' with one another. One invents something which then becomes a 'must have' for all the idiots who absolutely have to have the latest thing. There are a hardcore of people who will never buy anything other than Nikon so Nikon has to make something for them. It's consumerism gone mad.

Thank god Canon hasn't gone into this path and why would it anyway. Their upcoming G1x has bigger sensor than 4/3rds and has a lot better noise performance than NEX 7, I think it's a win for Canon coz it's ideal for dslr users or a beginners who want dslr like controls in a compact body and no hassle of changing lens. Can't wait to get it.

They wanted their share of the mug market.