Budget digital camera company, DXG, has just announced their new 3D camcorder, the DXG-5D7V (terrible product code) will be available in august, beating Panasonic’s offering to market. The camcorder shoots standard definition 3D video in mpeg-4, 5 megapixel still photos, and has a flip-out, 3D parallax screen so you can view the 3D without glasses. To sweeten the deal, it’s sold bundled with a 7 inch, parallax 3D picture/video/mp3 player and is available now for pre-order on Hammacher Schlemmer. That’s half the price of Fujifilm’s 3D camera and picture frame combination.

Before you go ape over this seemingly amazing deal, there are a few red flags to note. I’ve never heard of DXG. It sounds like one of those knock-off, Chinese OEM companies. Indeed, the DXG-5D7V resembles a Sanyo Xacti and the whole combination rips off Fujifilm’s camera and frame eco-system. Looking at the camera, the interaxial distance (the space between the two lenses) does not mimic the distance between a pair of human eyes, possibly limiting recordable depth of the 3D. Reviews of DXG’s previous cameras are bad with complaints the video quality isn’t even worth the already budget price. There’s a reason why you’ve never heard of this company.

Originally mentioned on macworld, I’m starting to seriously doubt the credibility of that magazine. In their news post, macworld says the camcorder records in “anaglyph”, aka, red/blue left and right images. Why would it record in those colors only to be reproduced as normal images when viewed in camera? The resulting mpeg-4’s can’t be in anaglyph because the colors would be screwed up and you would need 3D glasses to view them, contradicting the press release. Chalk that up to the laziness of today’s “journalist” bloggers. Come August, DXG may surprise all of us, but given their current product line and sketchiness of press sources, expectations should be lowered.