FujiFilm appear to have opened up a new front in the camcorder/digital camera war. The new 3 megapixel FinePix M603 Zoom is a digital camera which incorporates fairly advanced home movie features.
F’rinstance it can capture 640×480 movies at 30 frames per second with sound (good enough for full screen TV playback!) onto either Compact Flash or xD cards. Apparently xD cards are eventually scheduled to go up to 8GB in size, which means that you will be able to shoot 2 hours of footage onto a tiny card the size of a postage stamp. More official stuff here.
It looks to be just a bit bigger than a pack of playing cards, will cost around £700.00 when it arrives in November and could start a whole new market sector on its own.