The Canon XF200 has an Optical image stabiliser which is better than most video cameras that have been available for a similar time to it. Most similar spec video cameras that were released one year ago have a Hybrid image stabiliser. Optical image stabilisation is hardware based. Digital cameras with optical IS typically have a built-in gyro sensor and microprocessor that detects camera shake as it occurs. The stabiliser compensates for any camera movement.
This video camera's image stabiliser type (Optical) is in fact the best image stabiliser type across all small sensor size camcorders that have been available for a similar time to the XF200.
Across similar types of video camera the worst image stabiliser type is Hybrid.