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The Nikon V1 has appealing specifications for compact camera owners ready to get 'serious' about their photography. But it is expensive and users ready to take control over camera settings may be frustrated with a camera designed primarily to be operated in fully automated mode.

Sadly, it doesn't quite rival the image quality of competing Micro Four Thirds and APS-C compact system cameras at higher ISOs, but when compared to premium pocket cameras like the Canon G12 and Nikon P7100, the Nikon V1 does well.

Nikon is clear that this is a first-generation product, however, and more is to come; not yet a game changer but a showy and confident start.

The Nikon 1 V1 is a bold and brave step by Nikon into the compact, mirrorless system camera market. And while the V1 provides most of what Nikon wanted it too, it’s an expensive, if compact, option.

The Nikon 1 V1 is more capable than the J1, but the body lacks its sibling's finesse and we're not sure the extra features justify the higher price. Nonetheless, the V1 produces some of the sharpest, most detailed shots we have seen.

The Nikon 1 V1 is an interchangeable lens camera that's capable of supplying great image quality, and it's well built, but it's poor when it comes to usability. Furthermore, its sensor is very small and not up to the standard of competing cameras from Olympus, Panasonic, Samsung and Sony.

Viewed in isolation, the sheer speed of the V1 outweighs many of its downsides and results in an overall recommendation, but when you consider the competition there is a better choice in my view: the J1.

The Nikon 1 V1 is a capable shooter in its own right. Those looking for a little more zoom reach from current Nikkor lenses can enjoy 2.7x magnification thanks to an effective FT-1 adapter.

Image quality from the Nikon V1 is good and noise is nicely controlled, especially if you have time to process the raw files individually. The sensor is small enough to allow a small camera body, but large enough to enable control over depth of field.

In any case, the V1 is a sweet little machine. At $899, the same cost as an Olympus E-P3, it not only focus faster, is more accurate, has better metering, it also beats the E-P3 in high ISO.

We really have difficulty recommending the V1 as tested simply because it’s wildly expensive, and the results don’t measure up to the competition.

The V1 is doubtlessly a small, high-quality, discreet and generally fast camera but its interface is quite clearly not geared toward users who like to take full control of the picture-taking process.