As expected, Panasonic announced the GF3 today. The images below provided by Panasonic via DCRP) show the new GF3 (left) compared to the GF2 (right): As you can see, the GF3 is slightly smaller and more rounded. While the two cameras share the same 12MP sensor, the GF3 gains the latest Venus engine processor from the GH2 and G3, which means that it will share with those cameras the fastest autofocus performance currently available amongst cameras using contrast detect autofocus (all mirrorless compact system cameras). Continuous shooting rate is slightly increased to 3.8 fps. Gone are the stereo microphone, hot shoe, electronic viewfinder port, rear click dial (now replaced by a larger thumb rest), and dedicated ISO dial. These changes are clearly aimed at "point and shoot" upgraders, so it is curious that the camera will initially be offered in July only with the 14mm f/2.5 lens for $699. The kit makes sense for the target market in terms of size and looks, but one expects this demographic to want a zoom lens. A kit with the 14-42mm OIS lens will be available in August for $599, which is $50 less than the release price of the comparable Sony NEX-C3 zoom lens kit. However, it is worth noting that the GF3 14mm lens kit is $100 more expensive than the NEX-C3 16mm lens kit Those still waiting for an upgrade path from the GF1 in the form of a "rangefinder styled" camera with a full set of tactile controls can take heart. In an interview with Photo Radar (via 1001), a Panasonic Japan executive indicated that there are plans to split the GF series to include a camera "GF camera aimed at experienced photographers". We highly recommend 1001 Noisy Cameras for those interested in comprehensive coverage of the GF3 release.