Kodak is to cease production of cameras, camcorders and digital photoframes as it looks to bring down costs, but will continue to produce printer supplies.
The struggling company, which filed for bankruptcy protection last month, is looking to licence its brand to other camera manufacturers rather than producing devices itself.
IDC analyst Christopher Chute was quoted by Reuters as saying the firm's focus on producing printers caused to "take the eye off the ball" in the camera market.
Investors have put pressure on the company to focus on producing products such as printer ink cartridges, which are frequently bought by consumers, rather than cameras, which are occasional purchases.
NPD analyst Stephen Baker said it is "probably a good idea" for Kodak to be exiting a market that is "declining rapidly".
The Eastman Kodak Company, founded in the 1880s, invented both the handheld camera and digital photography.
It sponsors the Kodak Theatre in Hollywood, but is at risk of losing the deal due to its current financial position.