Panasonic DMC-G1

In August 2008, Olympus and Panasonic announced a new digital camera format, a kind of Frankencamera dubbed Micro Four Thirds (see news story here). The sensor size and shape is the same as the existing Four Thirds digital SLR format, but Micro Four Thirds cameras jettisson the familiar mirror-flipping mechanism and optical viewfinder used in both film and digital SLRs in favor of an all-Live-View all-the-time system for composing images. A smaller lens diameter is also included in the new format to further reduce overall camera size. The goal: creating cameras that support interchangeable lenses, but in a more compact package than existing SLRs, with the LCD-screen ease-of-use favored by point-and-shoot owners.

Instead of a separate focusing sensor, as used in a traditional SLR, Micro Four Thirds cameras analyze data from the image sensor itself to focus the lens, relying on contrast detection to determine when a sharp image has been achieved. This part of the format wasn't a new concept: existing cameras from Canon, Nikon and Olympus have offered contrast detection auto focus when in Live View mode, but they've always come up short when it comes to speedy performance. You could mount the camera on a tripod and shoot still lifes with good results, but chasing a hyperactive two-year-old with your camera set to Live View mode was an exercise in futility.

Panasonic is first out of the gate with a product based on the Micro Four Thirds format, the intriguing Lumix G1. This 12-megapixel camera just started shipping, priced at $800 with a 14-45mm lens (equivalent to 28-90mm on a 35mm camera). It became clear a few months ago, when we shot with a pre-production G1 at the Photokina trade show, that Panasonic had indeed cleared the most important hurdle to making Micro Four Thirds work: the auto focus system is plenty fast enough for most shooting situations. Now that we've had the chance to work with a final production model, and put it through our battery of lab tests, we have to say there's a lot to like here. There are also several quirks and quibbles, of course, as you might expect from the first crack at a distinctly different camera design. And we're still not sure precisely where the audience lies for this camera, particularly at the price. But we'll consider the marketing ramifications when we get to the conclusion. First, let's examine the G1 piece by piece and see what you're getting for your $800.