This is one of the most amazing instruments I have ever played!!!
I was looking for a cheap, durable, and reliable instrument for my very young student. I saw lots of different brands, but Yamaha had the reputation for the features I was looking for.
Being a "low-end entry" instrument, I didn't expect much, but from the moment I unboxed it, I was AMAZED! The guitar is in great shape—no color or varnish issues, no glue, no scratches, spotless (I've seen issues on other brands in this price range). Once I tuned it, I checked its setup—FLAWLESS out of the box—no buzzes, no noises, all notes are in the right place, low action.
The real shocker came when I started playing it. The neck is amazingly comfortable and fast. The fretboard and the frets feel really good to my fingers (no pointy frets or issues). The sound is excellent and balanced across all pickups. The bridge humbucker is very aggressive (as it should be, IMHO) and the split-coil option can give you an almost Telecaster vibe.
These qualities are usually found in much more expensive instruments. The sound didn't lag far behind my Fender Player Series Stratocaster (which costs more than twice as much as the Yamaha Pacifica).
The only thing that surprised me was that the tremolo was in a decked setup and not a floating one. BUT, it makes sense because the instrument is a low-end one aimed at beginners who should concentrate on learning technique and the instrument, not messing around with effects. Also, it's very easy to set the tremolo to a floating setup.
I highly recommend this guitar to beginners or anyone else who wants to get great quality for a low price.