Sony S980 has a
12.0MP 1/2.3-inch (6.17 x 4.55 mm ) sized CCD sensor . On the other hand, Panasonic ZS70 has a
20.0MP (1/2. ) sized BSI-CMOS sensor and features Venus Engine processor.
Panasonic ZS70's sensor provides 8MP more than Sony S980's sensor, which gives a significant advantage in real life. You can print your images larger or crop more freely.
On the other hand, please keep in mind that Max sensor resolution is not the only determinant of resolving power. Factors such as the optical elements, low pass filter, pixel size and sensor technology also affects the final resolution of the captured image.
Below you can see the S980 and ZS70 sensor size comparison.
As seen above, Sony S980 has a infx Larger sensor area than Panasonic ZS70. 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.