We'll go ahead and let those other guys battle it out for the "world's smallest" camcorder title -- meanwhile, Sony's just cranked out the one to really pay attention to. The HDR-TG1 Handycam checks in at just 1.3- x 4.7- x 2.5-inches and weighs ten ounces, all while boasting the ability to capture those oh-so-precious vacation moments and unannounced streaking episodes in 1080p 1080i. Aside from that, it'll snag stills at 4-megapixels and holds everything on MS Pro Duo / Pro Duo Mark2 cards, while the 2.7-inch touchscreen keeps your eyes glued to the action. Furthermore, you'll find a 10x Carl Zeiss Vario-Tessar optical zoom lens, BIONZ processing engine, 5.1 Dolby Digital audio recording and a bundled 4GB Pro Duo Mark2 card for $900. Get ready -- this one's comin' at you next month. Video of Japanese model after the break.
Update: Will be called the HD TG3E in Europe. %Gallery-19716% [Via AkihabaraNews]