Photography is all about capturing light. To do that well, a camera needs a good imaging sensor and a brighter lens. While digital sensors have gotten better, it is still better to have a bigger one with big pixels. Compact cameras have the smallest sensors and the more MP a camera has, the smaller the pixels become. Compact cameras also have relatively small aperture lenses, and the more zoom a lens has, the dimmer it gets. There is one other issue, and that is the method by which compact cameras focus. They rely on Contrast Detection...as light gets lower, contrast is lower too, so compact cameras have a hard time focusing in low light.
I tell you these things to set your expectations; you cannot really buy an inexpensive camera that will be much better at taking photos in low light, or of action. Some of the more expensive compact cameras use some special technology that works pretty well in lower light and with action, but just barely. A good choice would be the recently discontinued Sony HX5V, still available through Amazon for $200 (it was a $350 camera when it was introduced). Here is a review:
http://www.imaging-resource.com/PRODS/HX5V/HX5VA.HTM
Hey!! in the market for a new digital camera...my camera is primarily used in catchin the action at family events and most often at concerts. I want to upgrade from Nikon Coolpix S60 (5x optical zoom, 10 MP). My concerts pics have been okay with the Coolpix but I'd like to up the zoom and MP. The pics have been blurry as of late & its not just the action shots! I'd like to stay around $200 for a camera with higher zoom & megapixels and is quick with picture taking! Any suggestions?!?!

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