Sanyo hits back with what they call the world's smallest Hi-Vision digital camcorder. The Sanyo DMX-HD700 only has a volume of 171cc.

The Sanyo DMX-HD700 can record video with up to 1280x720p resolution and take still photos with 7.1MP resolution.
Other features of the Sanyo DMX-HD700 include MP4 AVC/H.264 video compression, ISO 3200 sensitivity, SD card slot supports up to 8GB SDHC cards, 5x optical zoom and a 2.7 inch screen.
The Sanyo DMX-HD700 comes in brown, lead, and red. Sanyo will start to shipping the DMX-HD700 camcorder on October 19th in Japan.
Via this Sanyo press-release.