Until now, buyers of compact system cameras (CSCs) have had to choose between truly compact (ie, pants pocketable) with a fixed focal length lens (eg, Sony 16mm lens, Panasonic 20mm lens, Olympus 17mm lens) or less compact with a zoom lens. The smallest CSC bodies, when paired with a "pancake" lens, fall into the same size category as advanced small sensor fixed-lens compacts as shown in the comparison of the Samsung TL500, Sony NEX-5 with 16mm f/2.8 lens, and Panasonic LX3 below: Today Panasonic announced the development of a new Lumix G X Vario PZ 14-42mm f/3.5-5.6 OIS lens, which is to be the first standard zoom lens with "pancake" dimensions. With this new 14-45mm lens, the smallest Micro 4/3 bodies will be similar in size to cameras like the Panasonic LX5, Olympus XZ1, and Canon G12. The small size of the lens is realized through the implementation of a collapsing design design like the Olympus 14-42 kit lens. The Panasonic lens takes things a step further by automatically extending and retracting with the power state of the camera, similar to the the lens on Panasonic small sensor cameras such as the LX5. Below is the new Panasonic zoom shown with the GF3X. The two will be sold together as a kit with expected availability in October 2011. The lens is shown extended below: As you can see, the new lens has no rings but instead offers a toggle switch for controlling the power zoom functionality, similar to zooming on today's small sensor, fixed-lens compacts.