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everyone has already said everything that i would have said, if i was thinking inside the box, so i'm thinking outside, just for fun....
1) i'm betting that jim is getting tired carrying a fully rigged RED with a 300mm lens and also his canon 1DsMarkII --- so he is creating the perfect hybridized video camera/dSLR, the one that lets you carry one camera to do both things equally well, without sacrifice.
2) 2K video camera that lets you shoot 4:2:2 video
3)...and 10 megapixel or better stills
4) interchangeable lens mount - an inveterate lens junkie is not going to mount up a fixed lens and limit the options
5) its form factor will more closely resemble a still camera than any video camera that we have seen to date, boxy like a Canon 5D....to fit in a pocket and let you balance it on a Wimberley head or tripod mount it to the lens, like a still camera but shoot it like video....
Not soon enough...
Jim
It'll be RED's first GREEN camera - powered completely by hand-crank (licensed from Kinetta of course)
That S8 style cam would be a Dream Machine for many people.
Jim has said it won't compete with the ONE, which keeps leading me back to a fixed lens device... it's the only real way to ensure that the product wouldn't cannibalize ONE sales.
The "new product category" comments have also been pretty interesting, and in line with your S8 idea. Right now the prosumer cameras are very strong, but aren't truly "pro" in design or execution. If a smallish fixed lens device can deliver Red-quality 2k images in a small form factor (and I may have already jumped the shark right there) at a $5-$10k price point (perhaps even more jumping?) Red will have an enormous hit on their hands.
Furthermore, such a device will begin to make Redcode a much more ubiquitous format, which will lead to more One sales as filmmakers come up having learned how to do great work on Scarlet.