The Sony NEX-5 and NEX-3 are both in the category of EVIL cameras. That is to say like a Micro Four Thirds camera, an EVIL camera has a P&S body with an interchangeable lens. The NEX-5 (above) ranks as the smallest and lightest camera in the world with an interchangeable lens. Both contain awesome 14.2 MP sensors, Exmor APS HD SMOS sensors, an ISO range of 200 – 12800, and are compatible with all E lenses.
Video though is where they differ — the NEX-5 (above) can shoot 1080i HD video while the NEX-3 stops short at 720p. And as for ports, let’s not get worried: both use HDMI outputs and USB 2.0, and can swallow up SD, SDHC, SDXC cards, Memory Stick Pro Duo and Pro-HG Duo. They both come out in June and the NEX-3 (below) is going to be priced at $550; NEX-5 goes for $650. Now it all comes down to price, because Sony really never has gotten the hang of pricing things, correctly. Source: Sony