Olympus just unveiled one of its most portable and compact digital SLR to date, the E420. While many are in awe of its size, it’s just a tad bigger than Nikon’s bestseller D40, but apart from that, feature-wise, they’re completely worlds apart.

The E420 is a 10-megapixel DSLR that comes with a large 2.7-inch LCD display, face detection technology, Live View, shadow adjustment technology and an all new and improved HyperCrystal II Technonology. Putting all the technical stuff aside and summing things up, what you’re getting from this latest camera of Olympus is one piece of sophisticated imaging equipment all packaged in a truly compact body.

Buyers will also have the option of a Zuiko ED 25mm/f2.8 or a14-42mm/f3.5-5.6 lens. The price isn’t that bad as well which ranges from $ 500 (body only) to $ 700 (Zuiko ED 25mm lens). The body kit with the Zuiko ED 14-42mm lens is in the middle costing $ 600.

Given the success of the D40 from Nikon and 350D from Canon and with the release of this baby, if this is a sign of things to come, we might see a surge of well-priced compact DSLRs from other manufacturers as well. If my prediction holds true, this will definitely be good news for the financially-challeged photogrpaher.