Olympus XZ-1 has a 10.0MP 1/1.63-inch (8.07 x 5.56 mm ) sized CCD sensor and features TruePic V processor. You can shoot at maximum resolution of 3664 x 2752 pixels with aspect ratios of 1:1, 4:3, 3:2 and 16:9. XZ-1 has a native ISO range of 100 - 6400 and it can save files in RAW format which gives you a wider room for post processing.
Olympus XZ-1 is not the highest resolution Small Sensor camera. Canon SX740 HS with its 21.0MP sensor is leading in this class. Check the comparison of Olympus XZ-1 vs Canon SX740 HS or take a look at Highest resolution Compact cameras list.
Olympus XZ-1 DxOMark Sensor Scores
DxOMark is a benchmark that scientifically assesses image quality of camera sensors. Olympus XZ-1 sensor has been tested by DxO Mark and got an overall score of 34 for its image quality. You can find the details of their analysis of Olympus XZ-1 here.
Let's look at how the size of the Olympus XZ-1's 1/1.63-inch sensor compares with other standard sensor sizes.
Comparison image of Olympus XZ-1 Sensor Size with other standard sensors
Sensor size is what determines the circle of confusion, and therefore how much
depth of field Olympus XZ-1 gives you at any given aperture.
You can
calculate
the exact depth of field for the Olympus XZ-1
at any focal length, aperture and subject distance, including the hyperfocal distance
for landscapes and how close you can get before the focus zone becomes too thin.