COLOGNE—Here at Photokina, Panasonic unleashed its Lumix DMC-GH3, which supplants the aging GH2 as the company's top-end Micro Four Thirds camera. The GH2 became a favorite among independent filmmakers and documentarians thanks to a robust video capture capability, one that was often aided by third-party hacked firmware that improved recording quality.

The GH3 should do away with the need to hack the camera, as it can natively capture 1080p60 QuickTime H.264 footage at an 80Mbps bit rate—complete with embedded Time Code. It's also capable of 1080p30, 1080p24, and 720p60 acquisition. The camera also supports MP4 and AVCHD capture at lesser bit rates and frame rates—MP4 tops out at 1080p30 at 20Mbps, while AVCHD support 1080p60 at 28Mbps.

There's a standard HDMI output port which video pros can use to view a realtime feed on a field monitor, or to record footage from the camera to a field recorder that supports the codec of their choice. Standard 3.5mm microphone and headphone jacks are there for audio input and monitoring.

This camera is no slouch when it comes to still capture. Its 16-megapixel image sensor supports a maximum ISO setting of 25600 in extended mode, and can go as low as 125. Its autofocus system is rated at 0.07 second, which is only about two hundredths of a second slower than that of the Canon EOS 7D £484 at Amazon UK and Sony Alpha 77 See it at Amazon UK. It can shoot at 6 frames per second, keeping up that pace for 29 shots in Raw+JPG mode. And its built-in flash has been improved to effectively cover the field of view of a 12mm Micro Four Thirds lens.

Both the rear display and EVF use OLED technology. The display has a 610k-dot resolution and swings out from the back of the camera, tilting so it can be viewed from many different angles. The EVF has a 1,700k-dot resolution, less than that of the EVF found in the Sony Alpha NEX-7 See it at Amazon UK. It is sharp and contrasty, and appears a bit bigger to my eye than the Sony EVF thanks to its higher magnification factor.

The camera body is fabricated from magnesium, and it's sealed against dust and water splashes. Despite its video features, the control layout and body design scream miniature SLR rather than video camera. There's the standard Mode Dial on top, a dial to adjust the Drive Mode, as well as physical buttons to control White Balance, ISO, Exposure Compensation, and a Function button. The rear features more Function buttons, two control dials, an AF control switch, and a Record button.

The camera has Wi-Fi, so you can control it via your smartphone. It is also compatible with Panasonic's wireless flash system, and there's a standard PC Sync socket to connect to a wired strobe or studio lights at up to a 1/160 sync speed.

Panasonic also announced a new zoom lens. The Lumix G X 35-100mm f/2.8 is a power zoom lens that covers a 70-200mm field of view in terms of traditional 35mm photography. It should pair well with previously announced Lumix G X 12-45mm f/2.8 lens, as the combination will give GH3 owners a kit that covers a 24-200mm zoom range. Both lenses are splash and dust proof, making them well suited for use with the GH3.

The 35-100mm lens will ship in November, with the GH3 shipping in time for last-minute holiday shoppers. Pricing has yet to be set, but Panasonic expects the GH3 body to sell for less than $2,000.