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Canon have now done it again at the bottom end of the DSLR market.

Disappointingly, Nikon hasn't announced anything new, whatsoever, in the consumer space. They're continuing to sell the perfectly good D70, but all of the rumors that they'd have a cheaper D50 and/or more expensive D90 have not come to pass. There's some new stuff at the high end, but that's not really interesting unless you're a professional photographer.

The new Canon 350D / Digital Rebel XT now has rough feature parity with the Nikon D70. Two megapixels of additional resolution is a moderate improvement, but the instant-on, the deeper buffer, and whatnot are far more important. The fact that Canon is selling it for such a cheap price is going to put a huge amount of pressure on all of their competition.