[3] The G2 was introduced as the successor to the Lumix DMC-G1 camera, with upgrades such as 720p high-definition video recording capability in AVCHD Lite and Motion JPEG formats.

Like the Four Thirds System,[5] it uses a 4000 x 3000 pixel sensor, but in a more compact camera body design enabled by eliminating the reflex mirror and optical viewfinder.

The 2X crop factor of the MFT sensor compared to 35mm full frame means that lenses can be designed smaller and lighter for any given angle of view.

Unlike the Four Thirds System which was optimized for DSLR designs with a mirror box and optical viewfinder, the MFT standard pursues a mirrorless approach.

The short 20mm flange focal distance of MFT cameras, compared to over 40mm for most DSLRs, allows virtually any existing interchangeable lens to be mounted via an adapter, albeit with only manual focus and aperture control.

Also added was 720p HD video and a redesigned physical user interface, changing placement of dials and button controllers, and an electronic viewfinder.