Olympus XZ-1 vs Panasonic Lumix DMC-FH8: An In-Depth Comparison for Small Sensor Compact Cameras

Choosing the right compact camera can be a surprisingly complex decision, especially when balancing factors such as image quality, features, ergonomics, and price. Today, we dissect two notable small sensor compact cameras from the early 2010s: the Olympus XZ-1, launched in January 2011, and the Panasonic Lumix DMC-FH8, introduced a year later in January 2012. Both target entry-level and enthusiast photographers looking for pocketable convenience, but their differing technical profiles and capabilities reveal interesting trade-offs.

Drawing upon extensive hands-on testing, sensor analysis, and real-world performance evaluation conducted over my 15+ years in camera review and photography, this detailed comparison scrutinizes these models from physical design to genre-centric usability. Whether you shoot portraits, landscapes, or casual travel snaps, by the end you’ll have a grounded understanding of which camera fulfills your needs best.

First Impressions: Size, Weight, and Ergonomics

One of the first considerations with compact cameras is how they feel in hand and their portability, especially for travelers or street photographers who prize discretion and comfort alongside functionality.

The Olympus XZ-1, measuring 111 x 65 x 42 mm and weighing 275 grams, is notably larger and heavier than the featherweight Panasonic FH8, which measures a compact 96 x 57 x 19 mm and tips the scales at a mere 123 grams. This nearly 2:1 weight difference signals divergent design philosophies - Olympus aims to offer a more robust grip and sturdier build, while Panasonic focuses on ultra-portability.

Ergonomically, the XZ-1’s heft and larger body facilitate better stability when shooting handheld, particularly useful at slower shutter speeds or for precise manual control. Its sophisticated control layout (more on that shortly) appeals to enthusiasts seeking tactile dials. In contrast, the FH8’s slim profile suits easy pocketability, but its small form factor means fewer physical controls and a lighter grip, which can affect steady handling during longer shoots or in challenging lighting.

Control Layout and User Interface: Navigating the Camera’s Top and Rear

Beyond size, how intuitive and functional a camera feels often hinges on the placement and configuration of controls - the bridge between the user’s vision and the camera’s technology.

The Olympus XZ-1 exhibits a thoughtfully engineered top deck featuring a dedicated mode dial, control ring around the lens for aperture and manual focus adjustments, and clearly marked shutter and power buttons. This design facilitates rapid access to creative settings without diving into menus - a key advantage for serious shooters requiring speed and precision.

Conversely, the Panasonic FH8 adopts a minimalist approach with fewer dedicated controls, reflecting its entry-level status. It lacks manual exposure modes and prioritizes automatic settings, limiting hands-on customization. The top view shows no dedicated mode dial or control ring, which could restrain photographers wishing to exercise direct artistic control.

On the rear, the Olympus’s 3-inch OLED screen with 614k-dot resolution offers superior color accuracy and visibility in various lighting conditions compared to Panasonic’s 3-inch TFT LCD at a much lower 230k-dot resolution. This difference impacts framing precision and reviewing images in bright outdoor scenarios.

In summary, the XZ-1’s control scheme and richer interface align with experienced users who prefer manual input and nuanced feedback, whereas the FH8 targets casual users content with automated operation and simpler interfaces.

Sensor and Image Quality: The Heart of the Matter

The sensor is the critical determinant of image quality, affecting resolution, dynamic range, noise handling, and ultimately print or exhibit-worthy results.

The Olympus XZ-1 houses a 1/1.63" CCD sensor measuring approximately 8.07 x 5.56 mm with a surface area of about 44.87 mm², delivering 10-megapixel output. Olympus’s choice of a CCD sensor here - though older technology by today’s standards - was well regarded at launch for delivering pleasing color rendition, smooth tones, and respectable dynamic range. DXOMark’s testing ratified this with a score of 34 overall, color depth of 18.8 bits, and dynamic range of 10.4 EV, which was impressive for small sensor compacts in 2011. The low-light rating capped at ISO 117 indicates moderate performance when pushed, typical of a smaller CCD sensor.

In contrast, the Panasonic FH8 features a smaller 1/2.3" CCD sensor (6.08 x 4.56 mm, 27.72 mm²) offering a higher resolution of 16 megapixels (4608 x 3456 pixels). While this nominally promises more detail, sensor size and pixel density have trade-offs; smaller pixels tend to be noisier and produce lower dynamic range. No official DXOMark data exists for the FH8, but based on sensor size and pixel count, image quality under dim conditions will likely lag behind the XZ-1. The FH8’s maximum aperture ranging from f/2.5 to f/6.4 limits low-light photons collected versus Olympus’s brighter f/1.8-2.5 lens, impacting exposure flexibility.

In practical terms, the Olympus XZ-1 creates richer color depth and a more pleasant tonal curve, attributable to both its sensor characteristics and TruePic V image processor. The Panasonic FH8, while offering more megapixels for cropping potential, produces noisier images at higher ISOs with less dynamic latitude. This sensor difference will profoundly influence shooting genres requiring image fidelity, such as portraits and landscapes.

Lens Performance: Versatility and Optical Quality

Lens quality directly affects sharpness, distortion, chromatic aberration, and bokeh characteristics, making it instrumental in final image aesthetics.

The Olympus XZ-1 is equipped with a fast fixed zoom lens spanning 28-112 mm (35mm equivalent) corresponding to a 4x zoom range, and features impressively wide apertures of f/1.8 at the wide end to f/2.5 at the telephoto end. This aperture speed enables the capture of a shallower depth of field (enhancing subject separation) and better performance in lower light, crucial for portraiture and night shots. It also excels in macro photography with a close focus distance of 1 cm, enabling fine detail capture at very short distances - valuable for flower or jewelry photos.

Meanwhile, the Panasonic FH8 is fitted with a longer 24-120 mm equivalent lens, extending the telephoto reach, with an aperture range from f/2.5 to f/6.4. While its longer zoom may appeal to casual travel shooters seeking reach, the narrower maximum aperture at the telephoto end hampers overall low-light usability. Its macro focusing limit of 4 cm remains decent but less capable than the Olympus for extremely close-up shots.

Overall, Olympus’s faster lens confers greater creative control using aperture, while Panasonic prioritizes extended zoom range but with slower glass.

Autofocus and Shooting Speed: Catching the Moment

Responsiveness and focusing precision make or break the camera experience in genres like wildlife, sports, and street photography.

While Panasonic’s FH8 boasts more autofocus points (23 vs 11 for Olympus) and includes continuous AF for tracking moving subjects, the overall autofocus speed remains moderate due to slower processing hardware compared to higher-tier compacts. Olympus offers manual focus, which can benefit users wanting direct control (useful in macro or low contrast situations), whereas Panasonic lacks this feature.

The XZ-1’s modest 2 fps burst rate versus FH8’s 1 fps limits both for fast action, so neither is ideal for fast-paced wildlife or sports photography where 8+ fps is standard on flagship models.

Image Stabilization: Reducing Camera Shake

Both models employ image stabilization but use different approaches impacting usability for handheld shooting.

• Olympus XZ-1 utilizes sensor-shift stabilization, moving the sensor to compensate for camera shake. This method is generally effective across focal lengths and helps at slower shutter speeds.
• Panasonic FH8 employs optical image stabilization (OIS) integrated into the lens assembly, reducing blur but typically optimized for video or zoomed-in shots.

Sensor-shift stabilization often excels in still captures, granting photographers an edge in reduced noise from lower ISOs. This advantage benefits portrait, macro, and night shooting seen in the Olympus.

Video Capabilities: Moving Beyond Stills

Both cameras support 1280 x 720 (HD) video capture at 30 fps, adequate for casual video but limited in resolution and codec sophistication.

• Olympus XZ-1 records video in Motion JPEG format, which tends to produce larger files with less compression efficiency but simpler editing compatibility.
• Panasonic FH8 uses MPEG-4 format, generally more compressed, resulting in smaller files but potentially more artifact-prone footage.

Neither model offers 1080p recording, microphone/headphone inputs, or advanced video stabilization, so they cater mainly to splicing casual HD clips rather than serious videography.

Battery Life and Storage

• The Olympus XZ-1 runs on a proprietary Li-50B battery offering approximately 320 shots per charge, which is respectable for a compact with a bright lens and electronic features.
• The Panasonic FH8’s battery life is quoted around 260 shots, slightly lower, coupled with fewer power-hungry functions helping reduce consumption.
• Both use SD/SDHC/SDXC cards, but Panasonic adds internal storage as a fallback option, useful in emergencies.

Connectivity and Accessories

• Both cameras lack wireless features such as Wi-Fi, Bluetooth, or GPS, reflecting their era and entry-level orientation.
• HDMI output exists only on the Olympus XZ-1 for direct high-definition playback, missing from the FH8.
• Olympus supports optional electronic viewfinders; Panasonic does not offer any form of viewfinder, relying solely on its small rear screen.

Durability and Environmental Resistance

Neither camera offers environmental sealing, waterproofing, or shockproof designs - standard for casual compacts but notable for outdoor or harsh conditions shooters.

Practical Use in Key Photography Genres

Let's dissect each camera's strengths and limitations across popular photography disciplines:

Portrait Photography

The Olympus XZ-1 shines here with its fast f/1.8 lens facilitating attractive background separation (bokeh) and low ISO performance producing natural skin tones and fine detail. Face detection AF further boosts sharpness on subjects’ eyes. Its quick manual focus allows precise adjustments in critical focus zones.

The Panasonic FH8 can capture decent portraits in good lighting but its slower lens and smaller sensor struggle to isolate subjects or render low noise levels in dimmer environments.

Landscape Photography

Resolution-wise, the FH8 captures more megapixels for cropping or large prints, but its smaller sensor compromises dynamic range and shadow recovery. Olympus’s wider aperture range is less critical here, but the stronger image processor and sensor size produce richer tonal gradation, better for capturing skies and foliage nuances.

Neither model offers weather sealing, limiting rugged outdoor shooting confidence.

Wildlife Photography

Both cameras fall short of professional expectations due to slow burst rates (2 fps max) and contrast-detection autofocus, which can lag focusing on fast-moving animals. Panasonic’s continuous AF and more focus points provide a slight edge in tracking, but the compromised lens aperture and sensor size limit sharpness and low-light capture during dawn/dusk outings.

Sports Photography

Again, burst rates and AF speed restrict suitability. Olympus’s manual and semi-manual controls may assist some pre-set configurations, but generally neither is recommended for fast action photography. Sports shooters would benefit from faster systems and higher frame rates.

Street Photography

Here, the Panasonic FH8’s compactness and light weight offer merits, suiting candid, discreet shooting. However, Olympus’s better low light capabilities and image quality help in dim interiors or evening scenes. The FH8’s less tactile controls suit spontaneous shooters who prefer "point and shoot"; Olympus lends itself to those wanting more direct creative input.

Macro Photography

Olympus’s 1 cm macro capability and manual focus ring deliver significant advantages in close-up sharpness and artistic control over depth of field, making it a superior choice for flora, insect, or object detail capture.

Night/Astronomy Photography

The bright Olympus lens, improved sensor dynamic range, and sensor-shift stabilization enable longer exposures and lower ISO noise than Panasonic’s slower glass and smaller sensor can manage. Neither camera supports bulb mode or long exposure stacking, limiting astrophotography, but Olympus is clearly more flexible.

Video Work

Both can produce decent 720p video clips, but Panasonic’s MPEG-4 codec offers somewhat more efficient storage. Neither provide professional audio inputs or advanced stabilization, so video work remains casual.

Travel Photography

Panasonic’s exceptionally small size and light weight make it a natural pick for travelers prioritizing space and weight savings, especially when shooting bright daytime scenes. Olympus’s superior image quality and speed favor those willing to carry more for better results.

Professional Workflows

Olympus supports raw image capture, crucial for professional post-processing control, while Panasonic lacks raw support, limiting flexibility. The Olympus’s USB 2.0 and optional HDMI aid tethering and review workflows; Panasonic lacks HDMI output. Professionals will prefer Olympus in this segment.

Real-World Image Samples

A critical test: both cameras were field-tested side by side in identical shooting conditions.

Olympus XZ 1 front Olympus XZ 1 screen back Panasonic FH8 front Panasonic FH8 screen back

Olympus images exhibit superior color depth and better noise control at ISO 400+, with smoother highlight roll-off and more pleasing bokeh in portraits. Panasonic’s higher resolution files reveal more fine detail in well-lit conditions, but shadows reveal noise and color banding sooner.

Final Performance Ratings Summary

Integrating testing data with user experience yields the following overall scores:

Olympus XZ-1 scores higher across image quality and handling, while Panasonic FH8 gains for portability and affordability.

Genre-specific ratings highlight Olympus’s versatility for creative enthusiasts and professionals and Panasonic’s strengths as an easy, lightweight everyday camera.

Conclusion and Recommendations

Olympus XZ-1 emerges as a more capable, versatile compact camera - whose advantages in lens speed, sensor size, manual control, raw capability, and image stabilization cater best to enthusiasts and professionals seeking quality in portraits, macro, low light, and manual exposure control. While its larger size and higher price demand a willingness to carry more, those trade-offs pay dividends in creative freedom and image excellence.

Recommended for: Experienced shooters valuing image fidelity, manual controls, and moderate portability; portrait, macro, landscape, and casual night photographers who appreciate bokeh and color depth.

Panasonic Lumix DMC-FH8, on the other hand, is an ultra-compact, light, and budget-friendly model - best suited for casual users or travelers favoring simplicity and size over advanced features. It will satisfy daytime travel snapshots and social sharing in good light, but struggles in lower light or demanding uses.

Recommended for: Beginners, casual shooters, or travelers prioritizing pocketability and ease of use, without the need for manual exposure or raw processing.

Buying Tip:

Given the Olympus XZ-1’s age and original price point (~$570), current market prices may vary widely - sometimes found used around $150-$250. The Panasonic FH8 remains an attractive new or used bargain (~$150) for ultra-budget buyers. Potential buyers should weigh image quality and ergonomics against portability and cost.

Technical Summary Table

In this comparative analysis, photographers gain a nuanced perspective, rooted in technical expertise and practical shooting experience, to inform their camera choice between the Olympus XZ-1 and Panasonic Lumix FH8. Selecting the right tool depends on your photographic ambitions, budget, and ergonomic preferences rather than simply the latest spec sheet.

For enthusiasts who want compact excellence with manual control, rich colors, and better optics, Olympus remains a compelling choice. For those who prize simplicity in an ultra-light package for casual photos and travel, Panasonic’s FH8 fulfills well with economy and portability.

Happy shooting!