Sony Cyber-shot DSC-RX100 boosts image quality with 1-inch sensor, f/1.8 Carl Zeiss Vario-Sonnar T* lens (hands-on video)

With little room to grow (or shrink) on the housing front, we've begun to see manufacturers take a different approach with point-and-shoot cameras, boosting the size of image sensors to present a clear advantage over smartphone cams, which continue to cannibalize their dedicated counterparts. Sony, for its part, has just announced what's by far the most compelling Cyber-shot to date -- the DSC-RX100. To the amateur's eye, this all-aluminum pocketable camera looks like any old high-end point-and-shoot, with a familiar compact design and a small, permanently attached optical zoom lens. Hiding behind that f/1.8 Carl Zeiss Vario-Sonnar T* 3.6x zoom optic, however, is this model's true gem: a 1-inch (13.2x8.8mm) 20.2-megapixel CMOS sensor, offering four times the area of the 1/1.7-inch imagers found in most comparably sized devices.

A larger sensor means sharper details, improved low-light performance and that creamy shallow depth-of-field that's synonymous with large ILCs. Having an f/1.8 lens on-board also doesn't hurt -- the optic offers a maximum aperture range of f/1.8-4.9, but can still manage captures just beyond f/2.8 at the 50mm position, giving it significant versatility. There's also a 3-inch 1,229k-dot LCD with a new technology called WhiteMagic, which adds white pixels to boost outdoor visibility while still delivering VGA resolution. A pair of control dials -- one surrounding the lens and the second on the rear -- enable direct access to frequent settings.

There's a full manual mode on-board, giving you complete control over both stills and 1080/60p video, along with RAW capture, a seven-blade circular aperture and a BIONZ imaging processor, with support for ISO 80-25,600. The RX100 is packaged with a new battery, which is capable of 330 shots on a single charge, and packs a MS/SDXC slot, HDMI port and a USB port with charging capability. There's also a 10 frames-per-second continuous mode, 13 Picture Effect options and features that were previously only available on Sony's interchangeable lens models, like Sweep Panorama. The RX100 is designed as an all-in-one unit, so there's no microphone input or hot shoe to be found, but given the camera's incredibly small size, we really don't mind. What's slightly less encouraging, however, is the price tag -- the RX100 will run you $650 when it hits stores in July, while accessories like a jacket case ($85), battery pack ($50) and screen protector ($12) place it further out of reach. Take a closer look in the hands-on video just past the break.

Gallery: Sony Cyber-shot DSC-RX100 hands-on