Cody wants to get into digital photography and video, and wants a camera for around $500. Leo says that his mobile phone can shoot 1080p video now. A DSLR with a kit lens is going to be pricey, although Leo says that for that price, the Nikon D3300 may be his best bet. With a Nikon kit lens, he'd at least have a nice basic 18-55mm lens. A good starter lens. If he buys it at B&H, he can also get a memory card included. Leo also recommends spending time at DPReview.com and read the reviews. The Sony NEX is also a good micro four thirds option.
Leo also says that using a DSLR for video would allow him to change lenses and have depth of field, which is far better than a standard camcorder.