Our Take
 
Canon’s current DSLR line is in our estimation the best of the entry offerings. However, the XSi is priced more like the Sony A350 and Nikon D80 than the entry models from both these manufacturers. The XSi competes well against these pricier models, but some complained the older XTi was not really a proper competitor at entry.
 
Canon has answered those critics with the introduction of the XS. At $200 less than the XSi the XS gives up surprisingly little for those savings. The biggest item would be the 10.1mp sensor instead of the 12.2mp sensor used in the XSi. However, both sensors are CMOS and famous for low noise, while their entry competition is still using the Sony 10 megapixel CCD sensor.
 
The XS competes very well at its entry price point. It is amazing how quickly it has happened but ALL of the current entry line-up come complete with in-body Image Stabilization or Optical Image Stabilization in the form of an IS or VR kit lens. The only exception is the Olympus E-420, which forgoes IS to remain the smallest production DSLR camera. Olympus does provide IS in the E-520 which sells at about the same price as the XS.
 
In particular the Nikon D60 does not compare well to the XS. The XS features both 2-mode Live View and an optional Battery Grip, which are both features missing from the D60. The XS also uses a reasonable 7-point AF instead of the older 3-point in the Nikon D60 or Olympus E-520/E-420. The XS also features both contrast-detection and phase-detection AF, missing from the Nikon or the Sony A200. Sony does offer Live View for $100 more in the A300 – and it ups the ante with a tilt LCD. The Pentax D200D competes well with the XS at a slightly higher price and it also features real weather and dust sealing.
 
Canon has met their goal of providing a lower cost and very competitive XS model. With the XS and XSi offerings it is pretty easy to argue that Canon has the best entry model lineup for now. Those who mainly want a truly useful Live View should probably choose the Sony A300/A350, but they will give up the better viewfinder and control of the XS and XSi. The Sony models are very easy to use if that is also an important criteria.
 
In crafting the XS Canon also left plenty of reasons to upgrade or choose the XSi instead. It is 12.2 megapixels instead of 10.1, a 3” screen instead of 2.5”, and the AF module is the more recent and likely faster 9-point module. The XSi is also a bit faster in continuous shooting, and has features like Spot Metering, more options for Dynamic Range Expansion, and a better viewfinder view than the XS. These differences will matter to Advanced Amateurs who will likely choose the XSi, but they don’t amount to a hill of beans for those seeking their first DSLR camera. That means Canon generally got their choices right on the XS versus the XSi.
 
Today’s entry DSLR models, at $500 to $700 with a lens, are the most capable we have seen. With the introduction of the XS Canon entry models are more than competitive. For many the new Canons will be the standard against which other entry models are measured – as they have been for many years.
 
Things do not look so rosy for Canon in the prosumer and Professional space. Nikon seems to have the upper hand with the D3/D300 and now the second full-frame D700. The Canon 40D is early in its product cycle but it is already having to compete with other prosumer entries primarily on price. Similarly the pioneering full-frame 5D is now nearly 3 years old and it is long overdue for replacement.
 
It was not long ago that Nikon Pros were jumping ship for Canon’s innovative Pro products. Now the tables have turned with Nikon viewed as the pro innovator again. Sony is also on the side lines preparing for their own 24- megapixel full-frame introduction. With Sony manufacturing the Nikon-designed D3/D700 full-frame sensor we have to wonder if a Nikon D3X is also on the near horizon.
 
With many things in the air Photokina should be very interesting in late September.   Canon will undoubtedly have a few more surprises for the market.
Canon Press Announcement
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  • nigham - Thursday, July 10, 2008 - link

    I tend to compare only Canon and Nikon, like many people I know.

    The Nikon D60 has autofocus only for AF-S and AF-I lenses -- so anyone who thinks long term (and would like to have the option to buy, say, a 50mm f/1.8 prime lens) will simply have to go for the XS.
  • twistedlogic - Friday, July 11, 2008 - link

    Sigma makes a 50mm f/1.4 as well as a 30mm f/1.4 with HSM.

  • ivan2 - Thursday, July 10, 2008 - link

    I don't know why anyone will choose these (XS) considering a near new 30D body can be have for less than 600 (with MS live rebate, 480ish) on ebay and various forums.

    That 7 point AF is just not good enough, it's the main reason I jumped from XT to 30D (and probably 40D later).

    For the XSi, I can understand if someone want a light package with the performance of the 30D (they have the same kind of AF, 9 point with a cross type in the middle).
  • slashbinslashbash - Thursday, July 10, 2008 - link

    I am glad that Canon was competitively forced into creating an IS version of the 18-55 kit lens, with better optics to boot. It is a huge upgrade over the original kit lens and good enough to make me swear off purchasing the 17-55 f/2.8 IS. Now Canon needs to get on the ball with other lens upgrades:

    - Update all Prime lenses > $200 to use Ring USM (*cough* 50mm f/1.4 *cough*)
    - Update all L Zoom lenses to have IS, at least as an option like with the 70-200 f/4L and f/2.8L zooms (*cough* 17-40 f/4L *cough*)
    - Update all existing IS lenses to use the latest-generation "three or four stop" IS technology (*cough* 28-135 IS USM, 70-200 f/4L and f/2.8L *cough*)

    The next version of the high-end Rebel and maybe the prosumer model (40D successor, although the 40D will be around for a while) needs to have a swing-out LCD. The Digic III processor is a champ at high speed image processing; Digic IV will feel like overkill with anything less than 15MP images. They are making progress in the higher ISO numbers; thank God for Nikon forcing their hand in this arena. Sony and others with in-body IS are forcing Canon to put IS into more of the low-end lenses. Now they just need to start putting it into the more expensive lenses with the same sense of urgency.
  • shinpickle - Wednesday, July 9, 2008 - link

    the pitiful camera coverage here is a disgrace to Anand name. why do you put amateur-hour camera reviews/previews/whatever along side in-depth technical IT hardware analysis, bumping down the articles done by skilled, experienced reviewers who do actual benchmarks & analysis. the bar is very high with dpreview, etc.. what on earth are you guys thinking.
  • Dennis Travis - Wednesday, July 9, 2008 - link

    This is a preview and not a review. The camera is not even on the market as yet.
  • melgross - Wednesday, July 9, 2008 - link

    Are you sure Sony is producing the D3/D700 sensor? That's a question that is being asked around the industry.
  • Wesley Fink - Wednesday, July 9, 2008 - link

    We are not 100% certain that Sony manufactures the D3/D700 sensor, but several respected experts have claimed this. Sony is also the most likely partner, since Sony and Nikon do have development agreements with Nikon exclusive marketing rights in place.

    Samsung and Sony hold joint patents on much of the technology on recent advancements on CMOS manufacturing, and Samsung is supposedly close to producing their first full-frame sensor, according to recent leaks in their R&D. This leak more or less confirms Samsung is not the manufacturer for Nikon, although it is an outside possibility.

    Panasonic/Leica would undoubtedly use any full-frame Panasonic manufactured in new Leica models, and Canon certainly didn't produce the sensor for Nikon. That leaves Sony and Kodak as the likely partners, and the long-term relationships and exclusive marketing agreements on joint development point toward Sony being the more likely.
  • Wesley Fink - Wednesday, July 9, 2008 - link

    We are not 100% certain that Sony manufactures the D3/D700 sensor, but several respected experts have claimed this. Sony is also the most likely partner, since Sony and Nikon do have development agreements with Nikon exclusive marketing rights in place.

    Samsung and Sony hold joint patents on much of the technology on recent advancements on CMOS manufacturing, and Samsung is supposedly close to producing their first full-frame sensor, according to recent leaks in their R&D. This leak more or less confirms Samsung is not the manufacturer for Nikon, although it is an outside possibility.

    Panasonic/Leica would undoubtedly use any full-frame Panasonic manufactured in new Leica models, and Canon certainly didn't produce the sensor for Nikon. That leaves Sony and Kodak as the likely partners, and the long-term relationships and exclusive marketing agreements on joint development point toward Sony being the more likely.
  • yyrkoon - Tuesday, July 8, 2008 - link

    Does not look like a bad camera for the price point, but if IQ is not as good as the competition we all would probably be better off with a $300 P&S

    Now where is the rest of the review ?

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