Olympus XZ-1 vs Panasonic Lumix DMC-FX78: An Expert’s Hands-On Comparison of Compact Cameras for Photography Enthusiasts

Choosing the right compact camera to accompany your photographic journeys can be challenging - especially when contenders like the Olympus XZ-1 and Panasonic Lumix DMC-FX78 promise portability, decent optics, and advanced features despite their small sizes. As someone who has tested thousands of cameras across genres and tech generations, I’ll walk you through a detailed, firsthand comparison of these two 2011 compact models suited for enthusiasts searching for a lightweight yet capable secondary camera or a serious entry-level option.

This review goes well beyond specs. By focusing on real-world performance, handling, and suitability across photography disciplines, you’ll learn which camera deserves your investment and why, regardless of budget or intended use.

Size, Build, and Ergonomics: How They Feel in Your Hands

When considering a camera to accompany you on daily walks or travels, size and handling are paramount.

• Olympus XZ-1: Measures approximately 111 x 65 x 42 mm and weighs 275 grams, sporting a solid, retro-inspired metal body that feels reassuring in hand. Its heft reflects a durable build and manual control-friendly design.

• Panasonic FX78: More compact at 100 x 55 x 21 mm and lighter at 142 grams, the FX78 leans heavily into ultra-portability. Its plastic construction feels less robust, but the smaller size and weight make it pocket-friendly for casual shoots.

Hands-on insight: Testing these models side-by-side, I found the XZ-1’s grip and button placement preferable for enthusiasts who want tactile feedback and quicker control access. The FX78 is easier to slip into a shirt pocket but sacrifices ergonomic comfort for its slim profile.

User Interface and Control Layout

Manual control is a decisive differentiator in compact cameras, especially in 2011-era models before touchscreen dominance.

• The Olympus XZ-1 offers a respectable set of physical dials and buttons, including manual focus, aperture priority, shutter priority, and exposure compensation accessible directly. While it lacks a touchscreen, its balanced top dials facilitate rapid changes - a boon when shooting in manual modes or low light.

• The Panasonic FX78 simplifies control, offering a touchscreen interface to navigate menus, but notably lacks dedicated manual exposure modes or physical dials for quick settings adjustment.

In my use, the XZ-1’s seasoned control scheme caters better to photographers wanting creative flexibility, whereas the FX78’s touchscreen approach benefits casual users comfortable in auto or scene modes.

Sensor and Image Quality: The Heart of the Camera

Image quality can rarely be distilled to specs alone but sensor size and technology are good indicators of potential.

• Olympus XZ-1: Sports a 1/1.63-inch CCD sensor measuring approximately 8.07 x 5.56 mm with 10 megapixels. Although a CCD was considered dated by 2011 standards (with CMOS gaining ground), Olympus optimized this sensor with its TruePic V processor, delivering pleasing image quality, particularly in well-lit situations.

• Panasonic FX78: Utilizes a smaller 1/2.3-inch CCD sensor (6.08 x 4.56 mm) with a slightly higher resolution of 12 megapixels. However, the smaller sensor area generally implies higher noise levels and lower dynamic range when compared to the XZ-1.

Measured performance: Reviewing DXOMark benchmarks and subjective testing, the XZ-1 achieves a higher overall image quality score (34 points vs. untested FX78), notably excelling in color depth, dynamic range, and low-light ISO performance. The FX78’s sensor captures more detail theoretically but noise and dynamic range limitations become evident beyond ISO 400.

Display and Viewfinder Experience

Interacting with the camera’s display matters greatly in composing, reviewing, and adjusting settings.

• The XZ-1 has a bright 3-inch OLED screen with 614k-dot resolution, providing vivid colors and deep contrast - beneficial for sunny outdoor shooting.

• The FX78 steps up the screen size to 3.5 inches but uses a TFT LCD with only 230k-dot resolution, resulting in noticeably less sharp and vibrant image previews.

Neither camera offers a built-in viewfinder, which could limit composition flexibility under bright conditions, although Olympus sells an optional electronic viewfinder for the XZ-1.

In practice: I found the XZ-1’s screen markedly easier on the eyes and superior for manual focusing or framing in bright light, while the FX78’s larger screen is more comfortable for general reviewing but can wash out outdoors.

Lens and Optical Performance: Fixed but Vital

The lens often defines a compact’s creative capability.

• Olympus XZ-1 features a relatively bright 28-112mm (equivalent) f/1.8-2.5 lens, offering a 4x zoom range. The fast aperture allows for shallow depth of field and better low-light performance.

• Panasonic FX78 sports a 24-120mm (5x zoom) lens with a slower aperture of f/2.5-5.9, wider at the short end but quickly losing brightness when zooming.

During real-world shooting, the XZ-1’s lens delivered better subject isolation and attractive smooth background blur (bokeh), especially for portraits and closeups. The FX78 compensates with longer reach for general travel and landscape versatility, but wide apertures are limited.

Autofocus and Shooting Performance

• The XZ-1 employs a contrast-detection autofocus system with 11 focus points and face detection. It lacks continuous autofocus but provides decent speed for static subjects.

• The FX78 features continuous autofocus and tracking with 11 points as well, supporting touch-based AF via the screen, although its contrast-detection system lags in low light.

Continuous shooting rates: Olympus tops out at a sluggish 2 fps, limiting sports or action capture. Panasonic offers a faster 4 fps burst, better suited for casual movement photography.

Battery Life and Storage

The XZ-1 charges slightly higher with a rated 320 shots per charge versus the FX78’s 200 shots. Both use proprietary lithium-ion batteries and SD card storage.

You may find carrying spare batteries essential when using the XZ-1 for longer shoots due to manual mode reliance and power-hungry OLED.

Connectivity and Extras

Neither camera includes Wi-Fi, Bluetooth, or GPS features, reflecting their 2011 design era. Both provide HDMI output, USB 2.0 for data transfer, and built-in flashes with variable modes. The XZ-1 allows external flash support, an advantage for creative lighting.

Video Capabilities: Beyond Stills

• The Olympus XZ-1 records at 1280 x 720p at 30 fps using Motion JPEG, a primitive codec by today’s standards, resulting in large files without advanced encoding.

• The Panasonic FX78 offers a richer video experience with full HD 1920x1080 at 60 fps in MPEG-4 or AVCHD formats, significantly smoother and more versatile for casual videography.

Neither supports external microphone input or advanced video features like 4K or slow motion.

Real-World Use Across Photography Genres

Olympus XZ 1 front Olympus XZ 1 screen back Panasonic FX78 front Panasonic FX78 screen back

Technical Summary and Performance Ratings

From my controlled lab and field testing, the XZ-1 achieves higher marks for image quality, low light, and manual control, while the FX78 scores well for video and portability.

Conclusion: Who Should Buy Which Camera?

Olympus XZ-1: The Creative Enthusiast’s Choice

If your priority is image quality, manual control, and creative flexibility, the Olympus XZ-1 delivers an excellent balance. Its fast, bright lens combined with RAW shooting and manual exposure lets you tackle portraits, macros, and even low-light scenes with confidence. While bulkier and pricier (around $570 new in 2011), the camera’s build quality and features reward those demanding more from a compact.

Pros:

• Bright f/1.8 lens with attractive bokeh
• Large 1/1.63" sensor with better dynamic range and color depth
• Full manual exposure modes plus RAW support
• Effective sensor-shift image stabilization
• Solid build with metal body and advanced controls

Cons:

• Heavier and bulkier than FX78
• Slower continuous shooting speed (2 fps)
• Video limited to 720p Motion JPEG
• No built-in viewfinder (optional only)

Panasonic Lumix FX78: The Portable All-Rounder

For those valuing lightweight design, longer zoom, and superior video features, the FX78 offers compelling value at a budget-friendly price (~$210 at launch). It’s a convenient travel companion or casual street camera, especially where HD video and touchscreen navigation matter more than manual control. However, lower sensor quality and narrower aperture range may frustrate enthusiasts seeking critically sharp images with creative depth.

Pros:

• Very compact and lightweight
• Longer zoom range up to 120mm equiv.
• Full HD 1080p 60fps video with AVCHD format
• Touchscreen interface for menu navigation
• Faster continuous shooting (4 fps)

Cons:

• Smaller sensor with limited dynamic range
• Slow and narrow aperture at telephoto end (f/5.9)
• No RAW support or manual exposure modes
• Less comfortable handling for prolonged use
• No external flash support

Final Recommendation

Ultimately, your choice boils down to what matters most: creative control and image quality or compactness and video. I recommend the Olympus XZ-1 for enthusiasts wanting a compact camera that delivers standout photos and manual flexibility. The Panasonic FX78 suits users who need a portable, versatile everyday camera with strong video features and ease of use at an affordable price.

Both cameras embody the early 2010s’ push toward bridging point-and-shoot simplicity with enthusiast features. By weighing the strengths and limitations outlined above against your main photographic interests, you can pick the camera that will accompany your creative vision best.

If you want detailed insight into how I performed these tests or to explore alternative models in this segment, feel free to reach out. My reviews always come backed by thorough lab measurements, outdoor shoots, and extensive side-by-side comparisons - ensuring you get trustworthy, experience-driven advice.

Happy shooting!