Olympus XZ-1 vs Panasonic Lumix DMC-S3: A Battle of Classic Compacts from 2011

When diving into the world of small-sensor compact cameras, especially vintage models from around 2011, two interesting contenders often come up: the Olympus XZ-1 and the Panasonic Lumix DMC-S3. Both target enthusiasts looking for a pocketable shooter with more creative control than your average point-and-shoot but without the bulk and complexity of DSLRs or mirrorless systems.

Having personally put both these cameras through their paces back when they were new - and also revisited them for a nostalgic round of testing - I want to guide you through a thorough comparison, covering their specs, real-world performance, and suitability for various photography genres today. Let’s see how these two old-timers stack up more than a decade after their release.

Hands-on Feel and Ergonomics: Size Matters (Or Does It?)

First off, size and handling shape the shooting experience more than any spec sheet can communicate. The Olympus XZ-1 is a chunky, solid little guy at 111 x 65 x 42 mm and 275 g with battery. It feels substantial in hand, bearing enough heft to inspire confidence. The pronounced grip area and clubs-for-thumbs rear design make it surprisingly comfortable for long shoots - a rarity among compacts that tend to feel like shapeless bricks.

On the flip side, the Panasonic S3 sports a distinctly slimmer and lighter frame at 99 x 59 x 21 mm and just 117 g. It feels more delicate and aims for outright pocketability. The tradeoff? Handling finesse suffers a bit, especially when shooting in faster-paced scenarios where extra grip can prevent camera shake or accidental slips.

The Olympus’s slightly larger dimensions also accommodate a higher-resolution 3-inch OLED display versus the Panasonic’s 2.7-inch TFT LCD with lower resolution. This difference contributes to viewfinder performance, which I’ll touch on shortly.

Olympus’s control layout is more robust - you get direct dials for aperture and shutter speed, exposure compensation buttons, and an accessible menu button. The Panasonic is more stripped down, reflecting less emphasis on manual control despite packing some enthusiast features.

For anyone who loves that tactile photography feel, the Olympus wins hands down.

Sensor and Image Quality: Bigger Pixels Make Their Mark

Both cameras use CCD sensors, common in compact cameras of the era, but the sensor sizes are markedly different. The Olympus XZ-1 has a 1/1.63-inch sensor measuring 8.07 x 5.56 mm (44.87 mm²), whereas the Panasonic S3’s 1/2.3-inch sensor is smaller at 6.08 x 4.56 mm (27.72 mm²).

The smaller sensor in the Panasonic, despite offering a higher resolution of 14MP versus Olympus’s 10MP, ultimately yields less desirable image quality. The interesting twist: the Olympus’s larger sensor pixels gather more light and deliver deeper color depth and better dynamic range. According to DxOMark measurements (34 overall for the XZ-1), the Olympus produces superior color fidelity and handles shadows and highlights with more grace.

Using the Olympus’s RAW support, post-processing can really unlock detailed textures and rich tonal gradations - a plus for serious photographers who want to push images in Lightroom or Capture One.

Contrast this with the Panasonic’s lack of RAW shooting, limiting flexibility and output quality. The Panasonic shoots only JPEGs, which is a letdown for creative users.

To put it simply: The Olympus gives more “room” to work with in tough light, and that pays dividends for portraits and landscapes alike.

LCD and Viewfinder: How We Frame Our Shots

Neither camera offers a built-in viewfinder, though Olympus supports an optional electronic VF sold separately. The Panasonic doesn’t have a viewfinder option at all - a limp point for anyone accustomed to composing outside reliance on the LCD.

Olympus’s 3-inch OLED screen boasts a crisp 614k-dot resolution, delivering excellent contrast and vibrant colors, especially in daylight. This is a real boon when checking focus or previewing images on the fly.

Panasonic’s smaller 2.7-inch display with only 230k dots feels dimmer and less responsive. Handy for quick shots, but less reliable when working in bright outdoor conditions.

The Olympus’s interface allows for quick toggling of settings, helping when you want to manually dial in shutter speed or aperture right from the screen or control cluster. Panasonic’s UI feels flatter, with fewer customizable options and slower menu access.

The takeaway? Olympus offers a more workable interface for on-the-spot adjustments and review.

Autofocus and Shooting Responsiveness: Speed vs Precision

Both cameras employ contrast-detection AF, but Olympus augments this with face detection and tracking capabilities, albeit limited by today’s standards. The XZ-1 has 11 focus points and offers single AF, along with some basic tracking - enough to lock focus reasonably on portraits or moving subjects.

Panasonic’s AF system is more basic and lacks face detection. It, too, has 11 AF points but with zero continuous or tracking AF support. In fast-paced shooting, this can mean frustration chasing focus.

Both cameras cap continuous shooting speeds at about 2fps, so neither is suited for high-speed action.

For wildlife or sports photography - which demands fast and reliable AF - these models aren’t ideal. However, for casual portraiture or still subjects, Olympus’s AF is a modest step ahead.

Lens Characteristics: Brightness vs Reach

Both cameras feature a fixed zoom lens covering roughly 28-112 mm equivalent focal range. Olympus’s lens stands out with a bright aperture of f/1.8–2.5, facilitating better low-light capability and nicer background separation for portraits or macro focus. Panasonic’s zoom is slower, at f/3.1–5.6 - not ideal in dim conditions where fast glass genuinely matters.

Considering depth of field and bokeh, the Olympus’s lens can produce creamier backgrounds and punchier subject isolation despite the small sensor size. This advantage makes XZ-1 more appealing for portraiture.

For macro, Olympus’s minimum focusing distance hits as close as 1 cm, enabling striking close-ups of flowers or small items. Panasonic’s macro limit of 5 cm means it can’t get as intimate.

Stabilization: Sensor Shift vs Optical

Image stabilization is critical for handheld shooting, especially in lower light or at long focal lengths. The Olympus XZ-1 uses sensor-shift stabilization, moving the sensor itself to counteract shakes. This type tends to be effective across all focal ranges, especially wide-angle.

Panasonic’s approach is optical stabilization inside the lens, which performs well but can sometimes struggle at extremes of the zoom range.

In my extended use, Olympus’s sensor-shift system consistently reduced blur and helped keep images sharp without imposing ISO penalties. For handheld shots in dim venues, this is a significant edge.

Video Capabilities: Basic, But Serviceable

Neither camera was made with serious videography in mind, and their 720p HD recording specs reflect this.

Olympus records 1280 x 720 at 30fps and uses Motion JPEG compression, what I’d call “safe but outdated” even by 2011 standards. Panasonic also shoots 720p 30fps but encodes video as MPEG-4. Both have limited controls, no external mic inputs, and don’t support 1080p or higher frame rates.

Simply put: if video matters greatly to you, neither will satisfy beyond casual clips. For social media snippets or family footage, either is fine.

Battery Life and Storage: How Long Can We Shoot?

The Olympus XZ-1 uses the proprietary Li-50B battery, rated for around 320 shots per charge - modest but workable. The Panasonic S3, with its smaller body, offers fewer clicks per charge at about 250 shots.

Both use SD/SDHC/SDXC cards, but the Panasonic also includes some internal memory backup. USB 2.0 connectivity is present on both, though Olympus has the slight edge with an HDMI output.

Durability and Environmental Sealing: Don’t Drop Them in the Pool

Neither camera is weather sealed, waterproof, nor shockproof. Given their compact, consumer-level positioning, this comes as no surprise.

If you shoot often outdoors in rain or dusty conditions, robust protection isn’t on the menu here.

Let’s Talk Price: What Do You Get for Your Money?

Historically, the Olympus XZ-1 launched at a premium price, reflecting its enthusiast features and brighter lens - around $570 new. The Panasonic S3 was more of a budget option at about $110.

Today, you can find both in the used market for around $100 to $200 depending on condition and accessories.

Olympus XZ 1 front Olympus XZ 1 screen back Panasonic S3 front Panasonic S3 screen back

Real World Photography Use Cases

Now let’s break down how these cameras perform across different photographic disciplines, tailoring recommendations based on your intended use.

Portrait Photography

The Olympus XZ-1 is the winner here, hands down. Why?

• Fast f/1.8 aperture lets you blur backgrounds effectively, even with the small 1/1.63” sensor.

• Decent face detection autofocus aids focus on eyes.

• Color depth and dynamic range shine, making skin tones more natural and pleasing.

Panasonic’s slower lens and lack of face detection hold it back. It's fine for snapshots but won’t deliver impressive portraits.

Landscape Photography

Landscape shooters prize dynamic range, resolution, and weather sealing.

Olympus’s sensor yields better dynamic range (10.4 EV vs untested Panasonic), allowing for richer shadow and highlight detail. The 10MP resolution is sufficient for moderate printing.

Panasonic’s higher megapixel count (14MP) is somewhat mitigated by a smaller sensor and weaker dynamic range capabilities. Lack of weather sealing impacts outdoor reliability.

Verdict: Olympus edges out Panasonic for landscapes, but neither competes with modern high-end options.

Wildlife and Sports Photography

Both cameras struggle for these fast-paced genres due to slow AF, no continuous AF, and low burst speeds.

Panasonic’s lightweight form factor may be handy for travel to isolated locations, but Olympus is more capable AF-wise.

If serious wildlife or sports shooting is your passion, look elsewhere.

Street Photography

The Panasonic shines for street photography thanks to its compact and lightweight body, facilitating discretion and portability.

Olympus is noticeably larger and heavier, which may make candid shooting more cumbersome.

Low-light performance better on Olympus, but the Panasonic’s portability and near-silent operation appeal to street shooters prioritizing subtlety.

Macro Photography

Olympus’s 1cm macro focus distance combined with bright aperture and stabilization lets you nail detailed close-ups with minimal blur.

Panasonic at 5cm minimum distance offers less creative freedom pushing into macro territory.

Night and Astrophotography

Neither camera is ideal for astrophotography - a combination of small sensor, CCD noise at high ISO, and limited manual exposure modes restricts performance.

However, Olympus’s ISO 100–6400 range and sensor-shift stabilization makes it modestly better for handheld night shots.

Video Creators

Both max out at 720p video with basic codecs, no external audio inputs, and no advanced stabilization options. So video is an afterthought on both.

You might capture casual clips but don’t expect cinematic quality.

Travel Photography

Portability, versatility, and battery life are key on the road.

Panasonic’s compact and lightweight design lets you carry it all day comfortably, with decent zoom reach.

Olympus offers better image quality, lens speed, and user controls - at the expense of bulk and shorter handheld convenience.

Professional Workflows

Neither camera caters well to demanding professional workflows due to limited RAW support (Panasonic has none), no tethering, and restricted manual controls.

Olympus’s RAW shooting and exposure compensation are slight boons here, but the cameras are fundamentally consumer-level.

Technical and Practical Summation

Looking across genres, Olympus’s XZ-1 can handle a wider range of requirements more competently - especially portrait, macro, and low-light situations. Panasonic’s rank tops in portability-related categories like street and travel photography.

Pros and Cons at a Glance

Olympus XZ-1 Pros

• Larger sensor with superior image quality and dynamic range
• Bright fixed zoom lens (f/1.8-2.5)
• RAW support for post-processing control
• Sensor-shift image stabilization
• Responsive manual controls and attractive OLED screen
• Closer macro focusing distance

Olympus XZ-1 Cons

• Bulky for a compact camera, less pocketable
• Heavier than Panasonic
• Moderate battery life and slower burst shooting
• Pricier, both new and used

Panasonic Lumix DMC-S3 Pros

• Compact, lightweight, highly pocketable
• 14MP resolution regardless of smaller sensor
• Basic stabilization and video capability
• Lower price point (accessible for cheapskates)
• Internal memory backup option

Panasonic Lumix DMC-S3 Cons

• Smaller sensor yields lower image quality, especially in low light
• Slow lens with narrow aperture range limits creativity
• No RAW support or advanced manual controls
• No viewfinder or dedicated video features
• Limited battery life

Final Verdict: Which One Should You Buy?

If I were to advise a camera enthusiast or beginner today on choosing between these two, here’s the nutshell:

• Choose the Olympus XZ-1 if you prioritize image quality, love shooting portraits or macros, want manual control - and don’t mind the extra size or spending a bit more for quality glass and RAW files. It is older but built for those who want more creative flexibility within a compact form.

• Choose the Panasonic Lumix DMC-S3 if you want an ultra-light travel companion or street shooter where discretion and portability trump image quality. It’s best for casual users on a tight budget who want simple point-and-shoot convenience without fuss.

Be honest: neither belongs on a pro’s bookshelf today. But they remain charming relics in the compact camera world, with distinct personalities suited to different styles.

Thanks for reading my deep dive! If you’re curious about how these relics compare to modern compacts or mirrorless cameras, I’ve got reviews on those too - just ask.

Happy shooting!