Olympus XZ-1 vs Sony S980: An Expert’s Hands-On Comparison of Early Compact Cameras

When diving into the world of compact cameras, especially models introduced a decade or more ago, it’s easy to get lost in specs and forget what really matters - how that camera performs when you press the shutter button. Today, I’m taking a deep dive into two notable small sensor compacts from the early 2010s: the Olympus XZ-1 and the Sony Cyber-shot DSC-S980. Both from brands with stellar reputations, released just two years apart, they target buyers wanting pocketable cameras with manual controls. But beneath the surface, their design philosophies and real-world usability diverge quite a bit.

Having personally tested thousands of compact cameras and spent hours with both of these models, I’ll break down strengths, weaknesses, and ideal use cases so you can see which one might fit best in your photography toolkit - even today.

Getting to Know the Cameras: A Brief Overview

The Olympus XZ-1, announced in early 2011, aimed high in the small sensor category with a fast F1.8 lens and manual controls familiarly found on DSLRs. Designed for enthusiasts who wanted an advanced compact, it delivered standout image stabilization and crisp OLED screens paired with RAW support - features that make a surprising difference in this segment.

Meanwhile, Sony's DSC-S980 came earlier, in 2009, positioned firmly as a casual compact with simple operation and a zoom lens but lacking advanced manual exposure modes or stabilization. It has a resolute but modest feature set, best seen as a pocket-friendly travel handler for straightforward snaps.

Looking at their physical dimensions side-by-side, you can see how the Sony S980's smaller footprint (93x56x24 mm, 167g) emphasizes portability, making it easy to carry all day with minimal bulk. The Olympus, while still compact (111x65x42 mm, 275g), is chunkier and more robust - definitely feeling like a more serious photographic companion.

Sensor and Image Quality: Why Size and Tech Matter

The heart of any camera is its sensor, and here the XZ-1 flexes some muscle. It employs a 1/1.63" 10MP CCD sensor, roughly 45mm² in area, which, while modest by today’s standards, is significantly larger than the Sony’s 1/2.3" 12MP CCD sensor (around 28mm²). This larger sensor allows for more light collection and typically better image quality, especially in tricky lighting.

In testing, the Olympus consistently showed cleaner images with less noise above ISO 400 and better dynamic range. Its DxOMark scores (overall 34, color depth 18.8 bits, dynamic range 10.4 EV, and low light ISO score of 117) demonstrate solid sensor performance for its class. The Sony’s sensor specs and image quality haven’t been independently benchmarked by DxOMark, but from experience, the smaller sensor and no image stabilization mean noisier images when light fades and less latitude in highlights and shadows.

If you’re shooting portraits or landscapes where detail and color fidelity count, the XZ-1 gives you that little edge that matters.

Handling and User Interface: Where Olympus Flexes its Controls

Both cameras feature fixed lenses and non-touch LCDs, but their handling philosophies couldn’t be more different. The XZ-1 has a sleek 3.0-inch OLED screen with 614k dots resolution - delivering vibrant colors, deep blacks, and good outdoor visibility. The Sony’s 2.7-inch LCD with just 230k dots feels washed out and significantly less detailed in bright environments.

Olympus equipped the XZ-1 with manual exposure modes including shutter priority, aperture priority, and full manual control. This is an enthusiast’s dream on a compact. The Sony S980 offers none of these, relying on preset modes with limited exposure compensation. Also, the XZ-1’s buttons and dials are more thoughtfully designed, with physical controls laid out for quick changes.

Take a look at the top control layouts: Olympus’s dedicated exposure compensation dial, mode dial, and click-wheel make it intuitive and tactile, especially during fast-paced shooting. The Sony leans heavily on menu navigation for adjustments, which may slow you down.

In terms of focus, Olympus’s 11 contrast-detection autofocus points include face detection and tracking. Sony offers 9 contrast-detect points without face detection and no tracking - I noticed the Olympus’s AF was snappier and more reliable in varied scenes, critical for street or event work.

Lens and Optical Performance: Speed vs Zoom Range

Zoom often wins casual users, but for image quality, lens speed matters.

The Olympus's 28-112mm equivalent lens offers a fast F1.8-2.5 aperture - a rarity in compact zooms. That means better low-light performance and shallow depth of field for portraits with creamy bokeh, especially at the wide end. The Sony’s lens ranges from 33-132mm (4× zoom) but at a slower F3.3-5.2 max aperture. So, in low-light or indoor scenarios, the Olympus lens can gather roughly twice the light.

For those shooting portraits or macro (Olympus focuses down to just 1 cm with built-in sensor-shift stabilization), this speed combined with stabilization translates to sharper images with less blur. The Sony macro starts at 10 cm, less flexible for close-up work.

Autofocus and Burst Shooting: Chasing Action

Neither camera targets sports or wildlife photographers, but burst and autofocus can make or break candid moments.

The XZ-1 offers continuous autofocus tracking and 2fps continuous shooting - not lightning fast, but usable for slow action or children’s events. The Sony caps at 1fps and lacks continuous AF tracking. In my side-by-side tests, Olympus’s autofocus was more consistent in tricky lighting and better at locking onto faces, thanks to its face detection. Sony’s focus hunting was slower.

Neither is ideal for professional sports or wildlife, but if your action is generally tame - walking kids, pets - the XZ-1 is easier to rely upon.

Video Capabilities: Modest but Functional

Both cameras shoot 720p video at 30fps in Motion JPEG format, far from today’s 4K marvels. Neither supports external microphones or headphone jacks, limiting audio quality control.

The Olympus’s faster lens and sensor-shift stabilization help produce steadier, brighter video, particularly indoors or handheld. The Sony lacks image stabilization, so footage tends to be shaky unless you’re extremely steady or using support.

For casual home videos or travel clips, this basic video is fine. The Olympus is preferable if you expect to shoot video in less-than-ideal light.

Battery Life and Storage: Practical Everyday Use

Olympus claims around 320 shots per charge, while Sony’s battery life isn’t officially documented, but real-world experience suggests a similar or slightly lower performance. The XZ-1 uses the proprietary Li-50B battery, while Sony uses a Memory Stick Duo/Pro Duo alongside internal memory, which may be a hassle given the rarity and cost of these cards today.

Both cameras use a single memory slot, so carrying extra cards is wise for extended trips.

Robustness and Weather Sealing: Neither Built for Rough Conditions

Neither camera offers weather sealing, waterproofing, or shockproofing. They’re best treated as delicate gadgets, so avoid heavy outdoor abuse.

Sample Images and Real-World Performance

Looking at side-by-side samples is often the clearest way to choose. Here, take a look (standardized exposure and JPEG settings) at what these cameras capture in typical daylight:

Olympus XZ 1 front Olympus XZ 1 screen back Sony S980 front Sony S980 screen back

Notice the Olympus images have richer colors, better sharpness especially wide-open, and less noise. Sony photos seem flatter and softer, due to slower lens and smaller sensor. You can see Olympus’s sensor-shift stabilization reducing blur even in hand-held indoor shots.

Diving Deeper: Scores and Performance Ratings (DxOMark and Beyond)

Here’s a consolidated visual summary of overall camera ratings based on lab and field tests, where available:

Again, Olympus leads with stronger sensor and AF performance, wider aperture lens, and more advanced controls.

How These Cameras Stack Up Across Photography Styles

Let’s see how their real-world capabilities match specific genres and demands:

• Portraits: Olympus edges out due to fast lens, stabilization, and face detection AF. Sony’s smaller sensor and slower lens limit shallow depth of field and sharp focus.
• Landscapes: Olympus’s better dynamic range and resolution (still under 12MP but cleaner) provide richer details.
• Wildlife: Neither is truly suited for serious wildlife; burst and AF lag behind pro or advanced compacts.
• Sports: Olympus’s 2fps burst and continuous AF tracking provide modest help in casual sports.
• Street: Sony’s smaller size makes it less obtrusive, but Olympus’s better AF and controls make quick framing easier.
• Macro: Olympus clearly superior with 1 cm close-focus and stabilization.
• Night / Astro: Olympus’s sensor and fast lens shine in low light; Sony struggles.
• Video: Olympus’s stabilization is a boon here.
• Travel: Sony’s compactness wins on portability; Olympus on overall versatility.
• Professional Work: Olympus offers manual exposure modes, RAW support, and better image quality - critical for workflow integration.

Final Verdicts and Recommendations

If you’re asking me, the Olympus XZ-1 is remarkably well-rounded for a compact camera of its age and still stands up for enthusiasts today. Its combination of a fast lens, competent image stabilization, manual controls, RAW shooting, and superior ergonomics make it a practical choice for those wanting more creative control without the bulk of interchangeable lens cameras.

That said, the Sony S980 fulfills a niche for absolute portability and simplicity. It’s fine as a point-and-shoot for casual snapshots, travel without fuss, or as a backup camera. But its slower lens, lack of stabilization, and limited exposure controls mean you’ll often feel restricted creatively.

Who should choose the Olympus XZ-1?

• Enthusiasts who appreciate manual controls and RAW shooting
• Portrait and macro photography fans wanting shallow depth of field
• Travelers needing a versatile, solidly-built compact with image stabilization
• Anyone shooting in low light or wanting better dynamic range

Who should consider the Sony S980?

• Casual photographers prioritizing a lightweight, pocket-friendly device
• Users wanting simple operation without fumbling menus or dials
• Budget buyers seeking a cheap entry camera for snapshots and family events
• Travelers wanting a no-fuss camera where size beats all else

Parting Thoughts

Reviewing the Olympus XZ-1 and Sony S980 side by side reminds me why compact cameras from this era still hold lessons for camera design today. Size and weight aren’t everything; lens speed, sensor size, and operational usability hugely impact day-to-day photographic success. If you’re watching the used market or curious about early compacts, the Olympus XZ-1 remains a standout performer for those who want to squeeze maximum creativity out of a small package.

Finally, here’s a snapshot of their specs and price-to-performance tradeoffs as a quick reference before you pull the trigger:

• Olympus XZ-1: ~$570 (new back then), sturdy with enthusiast features
• Sony DSC-S980: ~$300 (new), simplified, very compact, limited manual control

Whichever you choose, these models prove that smart design choices can still elevate seemingly modest specs into more rewarding photography experiences.

I hope this thorough, hands-on comparison helps you cut through the noise and make a more confident, informed choice!

As always, if you want deeper insights or personalized recommendations, feel free to reach out or check out my extended video reviews where I demo these cameras live in various shooting scenarios.