Panasonic Lumix DMC-GF2 adds touch screen, 1080i video

Panasonic Lumix DMC-GF2 photos

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Originally published 11/3/2010; updated 2/1/2011: Pricing added to chart. Scroll to the bottom for additional analysis.

When we awarded the Panasonic Lumix DMC-GF1 an Editors' Choice about a year ago, it was mostly because it fulfilled three of the four reasons I think the category exists: an interchangeable-lens camera (ILC), it provided a consumer-friendly compact size, faster than point-and-shoot performance, and the image-quality benefits of a large-ish Micro Four Thirds sensor.

Now there's a lot more competition: Olympus' PEN series is still around (but with sluggish performance), and Sony has come out with its sleekly designed and solidly performing NEX models. The biggest problem with a lot of these models, however, is price: They command the prices of entry-level dSLRs but don't deliver on the performance. The cheaper ILCs simply aren't compact enough. So I have to admit, I expected a little more with Panasonic's announcement of its GF1 update, the Lumix DMC-GF2. Though the sensor is the same resolution as before, it's the same newer version that's in the Lumix DMC-LX5.

The camera also has the updated image-processing engine that's in the GH2, improved video capture capabilities, and a touch-screen interface similar to that of the G2. Of course, given Panasonic's refusal to announce pricing it's impossible to state outright that it's too expensive; I'll just assume it's going to cost at least as much as the current GF1, which is on the high side.

Here's Panasonic's current lineup:

The GF2 will retain its unique place in Panasonic's ILC lineup as its "compact" model--at least until the company introduces a less-expensive version, which I think is necessary, if not inevitable. It's possible Panasonic could drop the price on the GF1 into E-PL1 territory; at my last questioning company reps weren't sure (or weren't admitting) what the strategy would be with respect to the older model.

The enhancements to the GF2 are nice, and I expect the image quality to match that of the LX5. I like the touch-screen implementation of the G2 as well, but Panasonic jettisoned the physical mode dial in favor of a virtual one, which some users might dislike.

In its marketing, the company seems to be aggressively targeting the NEX-5 with the GF2. Here's how it stacks up against that and some other, (presumably) cheaper competitors:

The GF2 does offer an optional EVF, but otherwise looks pretty evenly matched with the NEX-5 for features--the GF2 has all the usual Panasonic automatic options and a few touch-screen advantages (such as touch focus)--and its interface looks a lot more functional than the NEX. But the NEX's likely lower price and tiltable LCD are pretty compelling.

In the U.S., the Lumix DMC-GF2 will be available in black, red, white, and silver--Panasonic will be sparing us the pink version--and one of the two kits will ship with the new 17mm lens announced last month. Pricing is slated to be announced a month before the camera ships. It looks like Panasonic decided to be fairly aggressive with the pricing, which makes sense given how hard it's been for ILCs to gain significant traction in the US. Based on the price, specifications and what we've seen of its predecessor, it has the potential to be a relatively attractive option. The GF2 is slated to ship in mid-February.