The millenium began well for Minolta: In 2001 the company could introduce a digital viewfinder camera with apochromatic 4x zoom lens and 3.3 Megapixel image resolution, the Minolta DiMAGE S304, as well as other fine new digital cameras for the new era's revolutionized photography. The company had won an image as leading maker of autofocus SLRs for 35mm film and as maker of two professional DSLRs, the RD series. The next step was in preparation: a popular DSLR model. But soon losses were feared because one of the RD-DSLRs was based on the lenses for Minolta's APS SLRs and the whole APS branch began its decline only 5 years after its foundation. As consequence Minolta merged with Konica in 2003. But its digital DiMAGE series was continued under the brand Konica Minolta.
The DiMAGE S304 still had two displays, one conventional compact camera LCD status display and one small image preview/review TFT color display. The menu navigation keys were also the zoom keys.