The LX3 uses a 1/1.63-inch CCD with an effective pixel count of 10.1 megapixels. From a numerical standpoint, this isn't very different from the previous LX2. The effective pixel count of the LX2 was 10.2 megapixels, and the size of the CCD was 1/1.65 inches. I imagine that most users would think that there was almost no change simply from looking at the specifications. However, LX3 image quality is completely different from that of the LX2. Even though the pixel pitch in the newly developed CCD for the LX3 was only slightly increased, from 2.00 microns to 2.025 microns, it resulted in a relatively large increase in the area of the photodiodes. This raised the amount of light received by each pixel in the LX3, and, compared with the LX2, resulted in a sensitivity level of about 20% and a saturation level of about 15%.
In other words, it gives the LX3 higher sensitivity and a wider dynamic range in spite of the fact that the CCDs are about the same size. It also lets the LX3 capture subjects in dim lighting without that grainy look, and produces a rich tonal expression, so the highlights and shadows in a high-contrast subject are not lost. The wider light-receiving area also greatly suppresses noise to improve the S/N ratio by about 1.5 dB. Even though both models have about the same number of pixels and about the same CCD size, the LX3 offers numerous advances that you simply cannot see in the specifications.

The 1st-generation LX1 was equipped with the Venus Engine II, but to tell the truth, its noise processing system did not have a great reputation. When shooting at ISO 400 or higher, there were dot-like patches of false color and some bleeding at color borders, which eventually led someone to coin the phrase "Panasonic noise." It was absolutely essential that we overcome this problem, so in the next model, the LX2, we developed the Venus Engine III with a noise reduction circuit that suppressed false colors by eliminating luminance noise and chrominance noise separately. However, problems remained with the noise reduction setting, and there was still a small amount of color bleeding, so the overall evaluation was lower than we had hoped for.

Now, the LX3 solves all of these problems. The Venus Engine IV features two new noise reduction circuits. One circuit divides the noise into low-frequency and high-frequency components, and concentrates on suppressing the low-frequency part, and another circuit greatly improves color processing at image edges. The LX3 has definitely put an end to Panasonic noise. It keeps the resolution high even when shooting with high ISO sensitivity in dimly lit places, and produces sharp, stunningly beautiful photos with very little noise. Without the development of the Venus Engine IV, there may have never been a compact camera based on the principle of superb image quality.

Noise problems are not limited to the camera's CCD and LSI. In order to minimize all the different types of noise that affect the exchange of image processing signals, we also re-examined the circuits that are positioned around the CCD. The first thing this led us to was to provide one isolated power source each for the CCD drive circuit and AD conversion circuit. This greatly reduced the noise that was generated when the analog signal from the CCD was converted into a digital signal. A second improvement was to separate the ground pattern layers for the CCD, Venus Engine IV, and battery in order to prevent noise from jumping to the CCD. And a third improvement was to use a new CCD output buffer to accurately read the analog signal that was output from the CCD. These three peripheral circuit changes improved the S/N ratio by a total of 1.5 dB.

Naturally, our insistence on LX3 image quality also extended to the optical technologies that were used. All of the Leica DC lenses for Lumix cameras are manufactured in a vertically integrated production line at our Yamagata Plant, which is fully equipped with high-precision technologies measured in sub-micron units. Here, production proceeds using measurement instruments and quality assurance systems that have been approved by Leica Camera AG, based on their stringent quality standards for the supreme lens in the name of Leica DC VARIO-SUMMICRON. This is one of the major reasons why Leica DC lenses enjoy such a high reputation in the market for quality, and reach a level that more than satisfies the Panasonic demand for superb image quality. Nonetheless, for the Leica DC VARIO-SUMMICRON lenses used in the LX3, we also included an inspection process for a phenomenon called "partial blurring" in which only one portion of the image is affected by blurring. This is extremely difficult to find with conventional inspection methods such as MTF (Modulation Transfer Function) measurement. As a result, the Leica DC VARIO-SUMMICRON lens not only minimizes distortion, flaring and ghosts as other Leica DC lenses do, it also prevents partial blurring to render truly beautiful images with minimal loss of resolution throughout. In other words, the LX3 satisfies the requirements for high image quality in both digital and optical aspects.

While it's true that most people never even see the inside of their digital camera, you can rest assured that the LX3 is filled with only the very highest-quality parts from the lens to the CCD, the LSI and all the peripheral circuits. It's just possible that this was the first time that a camera development project went this far to specialize in raising image quality. Still, one of the things that I strongly felt was that this excellent level of image quality in a compact digital still camera was achieved by the synergetic effect of Panasonic's comprehensive expertise. I'm confident that anybody -- professional or amateur -- who uses the LX3 will easily be convinced of its remarkable image quality.