Compared to its direct rival offering from Panasonic the Nikon can easily compete on image quality. In fact the Nikon has an extra +1/3 stop in Color Depth, albeit practically identical Dynamic Range and Low-Light capability.
But, when pitched against the mighty Sony RX100 II, it’s a different story. Part of this is to do with its physically larger 1-inch type sensor, the same format as Nikon’s 1 Series cameras.
The Nikon clearly struggles to compete. It has -1 stop less Color Depth, -2/3rds of a stop less in Dynamic Range and well over -1 stop less sensitivity in Low Light, and is more noticeable in ‘real-world’ use than the figures suggest. Bear in mind the Sony (which has a 28-100mm f/1.8-4.9 Zeiss-branded zoom) is $750, around $200 more than the Nikon.