Canon announced a new entry-level d-SLR: the EOS Rebel XS, which along with the recently introduced EOS Rebel XSi, replaces the popular Rebel XT and Rebel XTi cameras. The company has decided to rollout some of the advanced features in its XSi features, but left out others to reduce-costs and differentiate the new entry-level d-SLR. Sporting the company’s new Digic III processor and a new live view mode, Canon’s EOS Rebel XS has a 10.1 megapixel image sensor that is almost identical to that used in the Rebel XTi (short of the XSi’s 12.2 megapixels, but higher than the 8MP on the original XT); the new Rebel XS also features a 2.5-inch LCD, which is larger than the 1.8-inch on the XT but smaller than 3.0-inch LCD on the XSi).

Canon has not announced pricing and availability for the US, but the camera was officially announced in Japan. The US will likely see a debut next month and the camera is expected to ship later this summer at about the same price point as the current XTi (or about $200 less than the Rebel XSi).