So, I checked the cameras supported by Camera Raw 8.5 and my camera is on the list.
Lightroom will import Sony ARW RAW files from my RX100III but the quality is below what it should be. In particular, seems to have more noise than I'd expect.
So to clarify my question, it doesn't seem that the conversion is as good as when using the Sony software to convert to a TIFF file. Of course the TIFF can be imported into Lightroom, but I wonder if there is a better way to preserve some of the detail in the image and still use Lightroom for processing and cataloging. Is there another Lightroom plugin for ARW files that is better then Adobes?
LR ignored in camera setting when shooting RAW, thus the image will be more noisy. You'll have to adjust it. Sony software can emulate the camera so it applied noise reduction to make it look better. In Lightroom you have to do it manually and save it as preset if you want. I shoot Sony also.