It's deja vu all over again: at almost this exact same time last year, Sanyo unleashed the world's smallest HD camcorder in the form of its VPC-HD1, and now the company has stepped up its game with the brand new Xacti HD2. Maintaining the same pistol-grip form factor and 720p resolution as its predecessor, the HD2 kicks the stills up to seven megapixels, delivers 75% better low-light sensitivity, and perhaps best of all, ships with a docking station that sports HDMI out. Like the HD1a, this new model boasts support for SDHC, and Sanyo claims that a big fat 8GB card will store almost three full hours of footage. Other notable specs include 16:9 mode, a 2.2-inch LCD, 10x optical zoom, and spoken directions to help newbs get shooting right away. Expect the HD2 to drop sometime in March, and even though you're getting a number of improved features, Sanyo managed to knock $100 off of the HD1's initial price of $800. Check out the gallery below for some hands-on action...


Sanyo's Xacti HD2 high-def camcorder delivers 7 megapixel stills

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Sanyo's Xacti HD2 high-def camcorder delivers 7 megapixel stills