Review: Olympus OM-D E-M5

The latest micro four-thirds camera from Olympus is clearly designed to appeal to all those hoary, wizened photographers who long for the good ol' days.

Olympus' new digital OM series is modeled after the company's original, beloved OM film cameras from the 1970s. But the new OM-D line is not just some tossed-off homage – the first camera in the line, the E-M5, is a fantastic picture-making tool.

Olympus' new digital OM series is modeled after the company's original, beloved OM film cameras from the 1970s.It makes excellent RAW and JPEG images, and it is certainly the most customizable compact today. And the thoroughly modern design – a magnesium-clad, weather-sealed body – is so masterfully executed that I bet a lot of the "if it's not curvy, it's crap" cognoscenti will be wooed by it.

At the heart of the E-M5 is a collection of core features that makes it quite possibly the best-performing micro four-thirds camera on the market today: a new 16-megapixel TruPic VI image sensor, a speedy processor, the five-axis mechanical image stabilization system, an articulated OLED touchscreen and a high-speed lens drive control.

Both RAW and JPEG images can fly into the E-M5 at a 9fps burst rate with awfully impressive results up to ISO 6,400. Olympus' default algorithms tend to over-sharpen JPEGs (this can be dialed down in-camera), but they are still on par with the tops in the mirrorless realm. RAW images are equally pleasing, with lots of highlight and shadow latitude for creative control once they're downloaded.

Using the E-M5's controls and dialing in custom settings is deceptively easy. The two wheels at the top of the body are the hub of the control center, and they can be set to operate different functions in a host of combinations to suit your shooting preferences. The Movie Record, Fn1 and Fn2 buttons are also configurable to 50 different settings. Once you get it set up to your taste, you won't be missing great shots while fumbling through menus.

Another big plus for this Olympus is its five-axis mechanical image stabilization system. Set to compensate for pitch, yaw, vertical, horizontal and rolling motion, this technology works better than anything else in the category. I found it gave an extra four to five stops to still images in challenging handheld situations. Couple this IS system with the weather-sealed 12-50mm kit lens and the E-M5's impressively fast autofocus system, and you can produce sharp images even relatively low light.

A lot of cameras in this category come sans viewfinder. Not this one. Olympus went all out and provided two options for getting a look what you're shooting – an impressively sharp and info-packed eye-sensitive electronic viewfinder (EVF) built into the top, and an articulated OLED touchscreen display on the back. The rear display tilts up and down (80 and 50 degrees, respectively) and switches off when the camera is brought to the eye. The touchscreen offers an easy way to check and adjust settings, and it can be configured to choose focus points and fire the shutter just by tapping the screen.

The $1,300 kit includes: E-M5 camera body, a Zuiko Digital ED 12-50mm f3.5-6.3 lens and the detachable compact flash.Even though it's mirrorless, Olympus has incorporated a traditional SLR-like tall prism box with a hot shoe. Sadly, there's no pop-up flash beneath it – a separate palm-sized strobe is included in the kit – but there is a socket at the back of the prism for other external accessories like the PenPal Bluetooth transmitter, a stereo microphone or LED lights.

In the realm of video, Olympus finally switched from AVCHD to the H.264 MOV HD video format that's easier for users to edit. Unfortunately, the camera only shoots in 30fps without any option for 24 or 25fps. In spite of its output limitations, the E-M5 makes very good video – especially when aided by the five-axis image stabilization system that takes the jitters out of most handheld shots, even when walking.

Every camera has a flaw, and the nail that sticks up on the E-M5 is in the continuous focusing performance of its AF system. It simply can't compete with a DSLR. However, this is a condition from which all mirrorless cameras suffer. Thankfully, the E-M5 is far less symptomatic that its peers.

Whether you're agog over the E-M5's flashback styling or you're absolutely exhausted by the nostalgia of its sheathing, there's no denying it's at the head of this century's pack of compact mirrorless cameras. Given the guts of this camera, its usability and its performance, it's even a contender for a DSLR replacement.

WIRED Compact, relatively light magnesium body. Both the body and the 12-50mm kit lens are weather-sealed. Fun, creative art filters for in-camera experimentation. A wide array of available lenses. Super-comfortable and almost-indispensable grip attachment.

TIRED No built-in pop-up flash. Can't change exposure settings while shooting video. Shallow eye cup diminishes the EVF's effectiveness in bright outdoor situations.