This is a more detailed description of Pixel Binning, including specific examples from Canon cameras.

When the cameras software does not process every single photosite, what happens is that every single Bayer photosite processed by the camera might be obtained by averaging data from a few photosites. This averaging process happens in the analog domain. When pixel binning is used, the image received/processed by the camera software is already pixel-binned (the image sensor is not read out at its full resolution).

Advantages:

Disadvantages:

Most Canon cameras use Line Skipping (a variation of pixel binning, which only combines the photosites from one single line, and discards the data from the other lines in a 3×3 or 5×3 block, see below). It's easier to implement in hardware, but the main disadvantage of line skipping is poor performance with high-frequency details (severe aliasing/moire issues).

Canon cameras generally use the following pixel binning modes:

Pure pixel binning modes (without line skipping) - 5D Mark III:

Pixel binning modes with line skipping - most Canon EOS cameras:

Pixel binning patterns will affect camera's native resolution in video mode.

Custom binning modes enabled by Magic Lantern (currently available in some experimental versions of the crop_rec module):

FIXME: way too long (move to new page?) (agreed)

→ ML Forum: Pixel binning patterns in LiveView
Simulation: 1x3 "column binning" vs 3x1 "line skipping" vs 3x3 binning/skipping
Line Skipping
Native Resolution
crop_rec
Anamorphic