This camera encodes MPEG2 to tape, probably with an ASIC.
from
http://www.sonystyle.com:
"Sony developed a Real Time MPEG Encode/Decode system with reduced energy consumption and compact size to fit inside a personal camcorder. This engine provides efficient MPEG2 compression, and recording and playback of clear HD images at the same bit rate of the DV format, so that High Definition video can be recorded on the same MiniDV cassettes as are used for SD recording."
Files captured with test-mpeg2 are detected by mplayer as:
Video: MPEG2 1440x1080 (aspect 3) 29.970 fps
Audio: MPEG layer-2, layer-3 48000 Hz, 2 ch, s16le
There is a menu item on the camera to select recording format either DV or HDV.
DV is readable with dvgrab and probably VLC. HDV is readable with test-mpeg2 as I
stated.
There is also a menu item to convert HDV recorded on tape to DV on Firewire on the fly.
I have not tried this yet but presume it reduces the image size. I presume this is
also handled in hardware.