Olympus SZ-16 iHS has a
16.0MP 1/2.3-inch (6.17 x 4.55 mm ) sized CMOS sensor . On the other hand, Panasonic ZS60 has a
18.0MP (1/2. ) sized CMOS sensor and features Venus Engine processor.
Below you can see the SZ-16 iHS and ZS60 sensor size comparison.
As seen above, Olympus SZ-16 iHS has a infx Larger sensor area than Panasonic ZS60. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.