Update 28/08/2009: We've tested a second version of the Panasonic DMC-FZ38 which doesn't suffer from the same problems as the one we tested here.  It's now back in our Product Face-Off.

Successor to the incredibly popular FZ28, it's now the FZ38's turn to join Panasonic's collection of bridge cameras.  Although the FZ38 has some of the same features as its predecessor, including an 18x zoom lens that goes from a 27 mm wide-angle to a 486 mm telephoto, it also brings some new elements to the table.  It's no longer a 10 Megapixel camera: it now has 12 Megapixels.  Do these two million extra pixels improve the camera's performance?  Or will we be won over instead by the high definition mode, with its separate controls and stereo microphone?

Handling

Anybody who's used to the FZ28 will be at home with the FZ38 as the two cameras come in very similar bodies.  The controls are identical, apart from one small detail: the FZ38 now includes a dedicated button to start recording video.  Apart from that, little has changed at the back of the camera, with the same 3'' LCD screen with a 230 000 pixel resolution.  The screen itself has a glossy finish, meaning it's not very easy to use in direct sunlight.  An electronic viewfinder is available, using a dioptric system to correct for people who wear glasses, but it isn't very practical as the resolution is limited and it's not big enough.

The FZ38 includes the new Venus Engine HD processor that's found in Panasonic's TZ7.  It's one of our favourite image processing chips thanks to its speed and impressive performance.  The FZ38 doesn't disappoint when it comes to speed: switching it on never takes more than a second, and the camera is responsive, except in RAW mode, where saving a photo can cause it to lock up for over three seconds.

Panasonic has put a lot of work into improving the autofocus, which is now very fast for a bridge camera: it takes about 0.7 seconds, whatever the focal length.  It's not a massive leap forward, as the FZ28 was already the best performer in this category, but it easily beats other bridge cameras from the start of this year.

All of the electronics inside are new, from the new sensor with a higher resolution but the same physical size to the Venus Engine HD image processing chip.  We were, then, expecting quite a lot ...

In general, the photos we took were very good and convinced us of the FZ38's merits.  We found plenty of detail, apart from interior shots we took in our lab, where we noticed a problem in the top right of the frame.  The FZ28 and FZ18, which both used the same lens, didn't suffer this problem.  Obviously, the model that Panasonic provided us for test wasn't at the top of its game.  We didn't find this problem in 'real life', though.  When we took it outside, the FZ38 took very sharp photos, so there is nothing to worry about.

As usual with Panasonic, the electronic noise is well-handled up to 200 ISO, but after that, bluriness begins to encroach.  The problem is under control until 800 ISO.


Outside, in natural light, the automatic white balancing is accurate, and chromatic aberration is extremely minimal.  Inside, the white balance tends to prefer warmer tones (red), but photos are correctly exposed.


The optical zoom is still as impressive as it was, and is very accurate in telephoto mode.  The optical image stabilisation does its job well, and saves you from increasing the sensitivity levels too quickly.  The macro mode is also very useable.

The 18x zoom is available even while recording video, but moves more slowly to provide smooth transitions.  720p HD videos, recorded in AVCHD, are good quality, as is the sound that accompanies it (see inset).

Note that there's also a 'manual video" mode, which allows you to film in manual mode, giving priority either to aperture (to control the depth of field) or to shutter speed (from 1/30th to 1/20 000th of a second to control the sharpness of movements).

However, the settings available aren't the same as those on the GH1, and when you change a setting in the middle of filming, there's an audible click that gets recorded by the camera's microphone.