When we awarded the Panasonic Lumix DMC-GF1 an Editors Choice about a year ago, it was mostly because it fulfilled 3 of the 4 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's 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:

 ' Panasonic Lumix DMC-G10 Panasonic Lumix DMC-G2 Panasonic Lumix DMC-GF1 Panasonic Lumix DMC-GF2 Panasonic Lumix DMC-GH2 Sensor (effective resolution) 12.1-megapixel Live MOS 12.1-megapixel Live MOS 12.1-megapixel Live MOS 12.1-megapixel Live MOS 16.1-megapixel Live MOS 17.3mm x 13.0mm 17.3 x 13.0mm 17.3 x 13.0mm 17.3 x 13.0mm 17.3 x 13.0mm Focal-length multiplier 2.0x 2.0x 2.0x 2.0x 2.0x Image processor version Venus Engine HD II Venus Engine HD II Venus Engine HD Venus Engine FHD Venus Engine FHD Sensitivity range ISO 100 - ISO 6,400 ISO 100 - ISO 6400 ISO 100 - ISO 3,200 ISO 100 - ISO 6,400 ISO 160 - ISO 12,800 Continuous shooting 3.2 fps unlimited JPEG/7 raw 3.2 fps unlimited JPEG/ 7 raw 3fps unlimited JPEG/7 raw 3.2fps unlimited JPEG/7 raw 5.0 fps unlimited JPEG/ 7 raw Viewfinder magnification/ effective magnification Electronic 202,000 dots 100% coverage 1.04x/0.52x magnification Electronic n/a/1.4 million dots 100% coverage 1.4x/0.7x magnification Optional Electronic n/a Optional Electronic n/a Electronic 1.5 million dots 100% coverage 1.42x/0.71x magnification Autofocus 23-area contrast AF 23-area contrast AF 23-area contrast AF 23-area contrast AF 23-area contrast AF Shutter speed 60-1/4000 sec' bulb to 4 minutes 1/4000 to 30 secs' bulb up to 4 minutes' 1/160 x-sync 60-1/4000 sec' bulb to 4 minutes 60-1/4000 sec' bulb to 4 minutes' 1/160 x-sync 1/4000 to 60 secs' bulb up to 2 minutes' 1/160 x-sync Metering 144 zone 144 zone 144 zone 144 zone 144 zone Image stabilization Optical Optical Optical Optical Optical Video 720/30p Motion JPEG MOV AVCHD Lite 720/30p or Motion JPEG MOV 720/30p AVCHD Lite or Motion JPEG MOV 1080/60i/50i @ 17, 13 Mbps 720/60p @17, 13 Mbps AVCHD or Motion JPEG QuickTime MOV AVCHD 1080/60i/50i/24p (60p sensor output) @ 24, 17, 13Mbps' 720/60p @ 17, 13Mbps QuickTime MOV Motion JPEG 720/30p Audio Mono Mono' mic input Mono Stereo Stereo, mic input LCD size 3-inch fixed 460,000 dots 3 inches articulated 460,000 dots 3-inch fixed 460,000 dots 3-inch fixed touch screen 460,000 dots 3 inches articulated 460,000 dots Battery life (CIPA rating) 380 shots 390 shots 350 shots 300 shots 340 shots Dimensions (inches, WHD) 4.9 x 3.3 x 2.9 4.9 x 3.3 x 2.9 4.7 x 2.8 x 1.4 4.7 x 2.8 x 1.4 4.9 x 3.5 x 3.0 Body operating weight (ounces) 13.9 13.1 12.2 11 (est) 15.2 (est) Mfr. Price n/a n/a n/a n/a $899.95 (body only) $599.95 (with 14-42mm f3.5-5.6 lens) $699.95 (with 14-42mm f3.5-5.6 lens) $899.95 (with 14-45mm f3.5-5.6 lens) $tbd (with 14-45mm f3.5-5.6 lens) $999.95 (with 14-42mm lens) n/a n/a $899.95 (with 20mm f1.7 lens) $tbd (with 14mm f2.5 lens) $1499.95 (with 14-140mm lens) Ship date May 2010 May 2010 September 2009 January 2011 December 2010

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:

 ' Olympus E-P2 Panasonic Lumix DMC-GF2 Samsung NX10 Sony Alpha NEX-5 Sensor (effective resolution) 12.3-megapixel Live MOS 12.1-megapixel Live MOS 14.6-megapixel CMOS 14.2-megapixel Exmor CMOS 17.3mm x 13mm 17.3 x 13.0mm 23.4mm x 15.6mm 23.4mm x 15.6mm Focal-length multiplier 2.0x 2.0x 1.5x 1.5x Image processor version TruePic V Venus Engine FHD n/a n/a Sensitivity range ISO 100 - ISO 3,200 ISO 100 - ISO 6,400 ISO 100 - ISO 3,200 ISO 200 - ISO 12,800 Continuous shooting 3.0 fps 12 JPEG/ 10 raw 3.2fps unlimited JPEG/7 raw 3.0 fps 10 JPEG/ 3 raw 2.3 fps unlimited JPEG/8 raw Viewfinder magnification/ effective magnification Electronic 100 percent 1.44 million dots 1.15x/0.58x Optional Electronic n/a Electronic 921,000 dots 1.29x/0.86x None Autofocus 11-area contrast AF 23-area contrast AF 15-point contrast AF 25-point contrast AF Shutter speed 60-1/4000 sec' bulb to 30 minutes 60-1/4000 sec' bulb to 4 minutes' 1/160 x-sync 30-1/4000 sec.' bulb to 8 minutes 30-1/4000 sec.' bulb' 1/160 flash sync Metering 324 area 144 zone 247 segment 40 segment Image stabilization Sensor shift Optical Optical Optical Video 720/30p Motion JPEG AVI 1080/60i/50i @ 17, 13 Mbps 720/60p @17, 13 Mbps AVCHD or Motion JPEG QuickTime MOV 720/30p H.264 MPEG-4 1080/60i AVCHD Audio Stereo' mic input Mono Mono Mono, mic input LCD size 3-inch fixed 230,000 dots 3-inch fixed touch screen 460,000 dots 3-inch fixed AMOLED 614,000 dots 3-inch tilting 921,600 dots Battery life (CIPA rating) 300 shots 300 shots 400 shots 330 shots Dimensions (inches, WHD) 4.7 x 2.8 x 1.4 4.7 x 2.8 x 1.4 4.8 x 3.4 x 1.6 4.4 x 2.4 x 1.6 Body operating weight (ounces) 12.2 11 (est) 14.5 10.2 (without flash)' 10.9 (with flash) Mfr. Price $749.99 (body only) n/a n/a n/a $799.99 (with 14-42mm f3.5-5.6 lens) $tbd (with 14-45mm f3.5-5.6 lens) $699.99 (with 18-55mm 3.5-5.6 lens) $699.99 (with 18-55mm 3.5-5.6 lens) $799.99 (with 17mm f2.8 lens) $tbd (with 14mm f2.5 lens) n/a $649.99 (with 16mm f2.8 lens) Ship date December 2009 January 2011 March 2010 July 2010

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 US, 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.