[Every time a hot new gadget is announced, the buzz can reach a boiling point before anyone stops to think about what all the fuss is all about. In our Scouting Report series, we’ll cut through the marketing jargon and examine what makes a certain product special—or in some cases, simply overhyped.]

Earlier this week, Sony announced its first so-called “premium point-and-shoot” camera, the Cyber-shot DSC-RX100. It’s the new flagship model in Sony’s compact-camera lineup, and it’s a new breed among Sony’s camera offerings. The company has offered basic point-and-shoots, rugged cameras, pocket megazooms, mirrorless interchangeable-lens cameras, and translucent-mirror DSLR-style cameras for years, but it hasn’t sold a high-end pocket camera until now.

The key word here is “pocketable.” This is a small camera. Usually, a compact camera like this presents compromises when it comes to image quality and performance, but the RX100 looks like it will excel in both those areas. Thanks to core specs that trump those of rivals such as the Canon PowerShot S100, Nikon Coolpix P310, Olympus XZ-1, Panasonic Lumix LX5, and Samsung TL500, Sony’s RX100 looks like a very big deal, with a very big price ($650) to match. Here’s why it may be worth that entry-level-DSLR price for anyone looking for a best-in-class pocket camera.

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