The Canon PowerShot G7X has a name that suggests it's part of the company's G series, a lineup of larger, high-performance cameras that don't quite fit in your pocket. But while the G7X will certainly be performance-minded, the camera's small size marks a change in course for the series. In fact, it's likely to be the best pocket camera Canon has ever produced.

Size-wise, the G7X is more along the lines of the PowerShot S series, which was generally considered to be the world's best compact camera before the Sony Cyber-shot RX100 debuted. And it's pretty obvious that Canon is dead set on recapturing the crown, because the G7X's specs look like they will give Sony's flagship point-and-shoot some serious competition.

It'll match the RX100 in several key areas. The PowerShot G7X has a 20-megapixel, 1-inch-type sensor that's significantly larger than the ones found in more-pedestrian pocket cameras. Its lens is nice and bright, with a maximum aperture of F1.8 at its widest-angle setting of 24mm and a not-too-shabby F2.8 at full telephoto (100mm). Even the size and weight of the camera are almost identical to those of Sony’s RX100 III.

The PowerShot G7X may even have the RX100 series beat in a few categories. For one, it has a longer optical-zoom range of 4.2X. Those who enjoy physical knobs and buttons should like its dedicated top dial for exposure-compensation adjustments. Its tilting LCD panel is also a touchscreen. Like the popular PowerShot S cameras, there’s a control ring around the lens to adjust settings—a setup that was subsequently borrowed by the RX cameras and a bunch of other premium compacts.

As usual, it’ll have all the features you’d expect on any higher-end compact camera these days: An ISO range that reaches up to 12,800, 1080p video recording at 60fps, built-in Wi-Fi and NFC, manual exposure modes, and RAW and RAW+JPG shooting. Unfortunately, the PowerShot G7X looks like it will have the same ho-hum battery life as its arch-rival: Up to 310 shots per charge in "Eco Mode" or 210 shots with normal settings.

One thing is for sure: This is a good trend. Camera manufacturers have shifted focus to features that matter (larger sensors, faster lenses, and deeper controls) rather than the meaningless megapixel battles of the days of yore. These kinds of premium compact cameras are bound to drop in price over the next few years, but for now, they’re still pretty pricey. The PowerShot G7X will go for $700 starting in October.