Panasonic all but confirms fixed-lens compact camera coming to challenge Canon PowerShot V1 as Lumix LX100 III overdue

Compact, fixed-lens cameras appear to be making a come-back, thanks in part to the rising popularity of cameras like the Fujifilm X100 series and Ricoh GR III on social media. Most recently, Canon re-joined the fray with the Canon PowerShot V1, and Panasonic looks like it will be following in Canon's footsteps with a new fixed-lens camera now all but confirmed. 

In a recent interview with Fegniao at CP+ 2025, Panasonic executives indicated that a general-purpose fixed-lens camera is currently in development, although an exact release date is unclear. This sounds suspiciously similar to the likes of the Panasonic Lumix LX100 line-up, and an LX100 III with a Micro Four Thirds sensor would make the most sense, given the current crop of APS-C cameras and Canon's new 1.4-inch sensor that features in the PowerShot V1 and rumoured PowerShot V3. 

In terms of market demand insight, Panasonic is keenly aware of the trend of recovering demand in the fixed lens camera market. Based on this change in the market, Panasonic is looking forward to the fixed lens camera market and is actively planning the introduction of new products. Although it is not yet possible to determine the specific time of the release of new products, it can be seen that Panasonic has launched an in-depth thinking and layout in this area. -Fegniao (machine translation)

Panasonic's executive team specifically references the success of the ZS99 and FZ80D, two bridge cameras largely aimed at amateur bird and wildlife photography with their impressive zoom capabilities, but it goes on to say that it will be targetting a more generalist camera for the next fixed-lens launch. Panasonic also draws comparisons between smartphone photography and dedicated cameras, espousing the image quality and performance advantages of dedicated cameras over the compact, convenient smartphone cameras. 

If Panasonic launches an updated LX100 III, it will need to be very competitive when it comes to pricing, given the current demand and competition. Aside from the aforementioned Canon PowerShot V1, which is slated to launch in Western markets at a price of around $900–1,000, Sony's ZV-E10 II ticks many of the same boxes at a price of $1,098 with a 16–50 mm F3.5–5.6 kit lens.

Despite launching as long ago as 2018 with a $999 MSRP, the Panasonic Lumix LX100 II still sells in used condition on sites like Amazon for as much as $1,199, so the demand is clearly still there for a compact camera with decent-sized sensor.