The IXY 160, despite its slim, lightweight body design measuring approximately 22.1 mm in thickness and weighing approximately 128 g, features a 28–224 mm (35 mm film equivalent) 8x optical zoom lens. Combining a high-resolution approximately 20 million effective pixel CCD image sensor with Canon's DIGIC 4+ image processor, the camera makes possible the capture of high-quality photographs and movies with reduced noise.
The IXY 160's Smart AUTO feature automatically detects scenes by assessing various factors in both the background and the subject and analyzes them using 32 predefined shooting situations. Furthermore, the Intelligent IS function analyzes camera movement and automatically applies one of six image stabilization methods to achieve optimal shake correction based on the shooting situation.