Since the introduction of the Walkman in the 1970s, Sony has had its own way in several areas of consumer electronics, though there have been a few darker moments. It did swap Betamax for VHS, arguably hasn’t yet come to terms with Apple’s iPod and has had to kick the stylish Clié PDAs into touch. But, with just about any other electronic gadget you care to mention, Sony has been at the top of its game. And being one of the two main CCD producers in Japan has helped keep it at the forefront of digital camera technology, too.

This year’s update to the W1, itself a cut-down version of the truly outstanding V-1, is the new W-5 (we’re not sure what happened to the W3 and W4). It has a similar specification to its predecessor, but is priced some £50 cheaper.

We’re pleased to say that the W5 has kept the substantial aluminium body, the Carl Zeiss zoom lens with 3x range, and the massive 2.5in monitor. It has added 32MB of internal memory and enhanced battery life. Sony has also updated the screen, with wider viewing angles and new reflective coatings. However, the build quality, which is good and an improvement over Panasonic’s faux metal bodied FZ-1, is still some way off the original V-1. It has somewhat boxy ergonomics, and even though the W5 favours two AA batteries, the body just isn’t as compact as it could be. Put simply, this isn’t what we would call a ‘pocket’ camera.

The classy Zeiss lens is a nice addition, but, at its longest setting (114mm) the maximum aperture decreases from a respectable f/2.8 to a disappointing and dark f/5.2. In low light, the focusing does struggle, which is why Sony has built it with an AF assist lamp.

At this point, you may be forgiven for thinking that we don’t like the W5, but you would be mistaken. Despite the faults that have been mentioned, this is an immensely appealing camera. There’s seriously little to dislike in speed of operation, and images are lush and awash with detail.

It’s not the best 5-megapixel compact at the price – that title must go to Nikon’s svelte Coolpix 5200 – but the lure of the big screen, chunky design and easy-to-follow menu make the W5 a serious rival. Undoubtedly, it will sell by the bucket load. Next up, Sony’s supposed iPod killer … can it dominate that market, too?