Nikon Announced their answer to the Canon digital Rebel XTi (400D) with their update of the D40: the Nikon D40x. It is basically the same as the D40, but with almost twice the resolution at 10.2 megapixels, faster continuous shooting mode at 3 fps and now featuring ISO 100 (versus 6.1 megapixels, 2.5 fps and ISO 200 in the D40). First indication on the price is $799 US with a kit lens (18-55mm), so it is really challenging the XTi, but also lacking some key features like anti-dust and the excellent noise performance of the DIGIC II chip, to name a few. The XTi started at $899 US with kit lens, but now is close to $850.

DPReview has a hands-on preview of the D40x.