Panasonic's Lumix DMC-G3 is a step in the right direction

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Succeeding the G2, the long-rumored Lumix DMC-G3 is Panasonic's reaction to finally getting the fact that most of the people buying these interchangeable-lens cameras (ILCs) are stepping up from a point-and-shoot rather than sideways from a dSLR. That's partly what's driving Panasonic--and therefore Best Buy--to dub these "compact system cameras"; they want people to mentally associate them with the compact cameras they're replacing.

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But calling them compact doesn't necessarily make them so. While the G3 is substantially smaller than the G2, it's still pretty large to be considered compact. (I even trip over calling smaller enthusiast models like the Panasonic Lumix DMC-LX5 "compact.") Only Sony's NEX models, which are about as small as you can make them while still fitting a mount for a decent-size lens, really qualify, and they do so by jettisoning both a viewfinder and a flash.

Panasonic Lumix DMC-G3 photos

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And in Panasonic's product line the Lumix DMC-G3 is not considered the compact model: it's the step up from the GF2 with a built-in electronic viewfinder and a physical mode dial, as well with as a deeper (and I think more comfortable) grip. It retains the same flip-and-twist LCD and relatively well thought-out interface, too.

Here's Panasonic's current ILC lineup:

Full-time AF and AF tracking are back, but while the video's boosted from 720p to 1080/60i AVCHD--with only a 720p MJPEG fallback--and it now sports a stereo onboard mic (and retains the full manual capabilities in movie mode), gone are the mic and headphone jacks. That set of capabilities firmly positions the G3 between the GF2 and GH2, with Panasonic obviously driving the videography buffs upstream to the more expensive camera.

The G3 has a new 16-megapixel sensor; though it's the same resolution as the GH2's, it's a less sophisticated (and cheaper) one. For the sensor, Panasonic has added on-chip noise reduction, similar to the scheme used by Sony's Exmor chips, along with the Venus Engine FHD image processor that's in the GF2 and GH2. It also incorporates Panasonic's Light Speed autofocus system from its more recent cameras. That AF system drives the sensor at 120 frames per second to more quickly iterate down through the contrast autofocus decisionmaking process.

Panasonic adds Pinpoint focus, which basically allows you autofocus with pixel-level accuracy. The camera pops up a magnified area as a visual aid. It can also provide a picture-in-picture magnified view for easier navigation, but I couldn't find it. The problem remains for the G series that there's so much here that you'll miss half of the capabilities if you don't read the manual. The company has also changed the names of a couple of features to make them more approachable: Film mode is now Creative mode and My Colors has become Photo Style. And I have to mention that a feature I've been asking for has finally been implemented: you can turn off the touch focus to prevent accidents. That said, I'd rather you be able to toggle the capability or simply lock the selected focus area than have to live with it or live without it.

I haven't formally tested the camera yet, but the autofocus system from the preshipping version feels zippy enough. The ISO 3200 shots I took definitely look better than those from the G2, and there seem to be far fewer JPEG artifacts than Panasonic's usual. Even midrange ISOs, like ISO 400 and 800, seem more usable than with previous models. But that's just based on the 50 or so shots I was able to take, and a real judgment will have to wait for more formal testing. One disappointment though is that battery life seems to have dropped down to about 250 or 270 shots from 390.

Here's the competitive lineup:

As I see it, because of its size, price, and feature set, the G3's biggest competitor is the Sony Alpha SLT-A55, a camera that straddles the dSLR and ILC worlds. (Sony considers the A55 a dSLR, but the "R" in there stands for "reflex," something which the A55's fixed mirror doesn't provide. That R enables an optical viewfinder, which the A55 doesn't have, and I think the through-the-lens optical viewfinder is the distinguishing characteristic of a dSLR.) I suspect performance will ultimately differentiate the two cameras; right now, the A55 ties the GH2 for fastest in the category and the G3 incorporates the GH2's AF system, which bodes well for it. If the G3's photo quality turns out as good as my preliminary shots imply, then the camera may turn out to be a class leader--in a class defined by EVF-equipped ILCs not targeted at videographers. Probably not the mass market Panasonic's hoping for, but a step in the right direction.