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External microphones can have a big impact on the audio, especially if you use specific mics for a task - e.g. if you are doing an interview, using a “lav” (tie clip) type mic. Or a shotgun mic on a boom pole… the biggest challenge with the built in mic is ideally you want the subject as close to the mic as possible. For an on-camera mic, a shotgun mic can help; but I’m not sure if one in your price range would really be worth it. I have a £90 Rode Videomic, and this is a big improvement over the built in mic (and the built in mic on my Sony HC1 is also pretty decent). It is directional, so you get the sound mostly from the front. But for £30-£40.. not sure what you could get.
My advice is if you are happy with the internal mic, and have a limited budget for a mic, to stick with the internal one.
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Mark
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