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Edit:
Something you can try to confirm HDR is on, go to your config file here:
%userprofile%\Documents\Dead Space (2023)\settings\steam
Open this file (choose Notepad):
ProfileOptions_profile
Make sure this line is present:
GstRender.HDR 1
Save the file.
If you've got HDR set to auto is SHOULD be on.
I can tell it is using HDR without the windows setting by the color of the fps counter (I'm using MSI Afterburner), but like OP mentioned, the color of the Steam Overlay also gives it away usually.
This is one of the rare games that don't need the Windows setting, it can do HDR all on its own. I've seen this prior only in The Division 2 and it had excellent HDR with my rather cheap HDR display (only display HDR 400 on a VA panel and no local dimming zones). Same in Dead Space, it looks excellent!
I am using W11 and without enabling it in Windows prior starting the game, HDR option will be not available at all. So on W11 you need to start the game with HDR ON and then follow the steps as I wrote above make the washed-out colors go away.
I see. Curious. For me the option has always been at "automatic", even when I first started the game, but I didn't realize HDR being on already.
So for the next start I switched it on in Windows. Option was still on "automatic" and the picture looked washed out. Then I realized my mistake.
So...different approaches for Win10 and Win11 then I guess. Still a good find I reckon. :)
There must be a better way to working out what is happen other than look at the txt on afterburner osd.
1. Start the game with HDR turned ON in W11.
2. When in the game's main menu check that HDR is ON and it is displayed as automatic under video options.
Now, what does the trick every time is as follows: AVOID/DO NOT alt-tab the game or you will end up with washed-up colors, crushing blacks, and highlights. If you do alt-tab the game you will need to do as below again to play this game with HDR.
1. Turn the HDR in Windows to OFF - USE the combination of keys (WIN11) Windows logo key + Alt + B.
2. Turn the HDR IN GAME TO OFF as well.
3. Return to the game for a couple of seconds.
4. Turn the HDR in GAME to automatic - you should see it is on now and the game looks different with better blacks but highlights are affected, too bright etc.
5. Turn the HDR in Windows to ON - use Winkey + Alt + B
That is it! Enjoy!
Set up your Brithness to your liking and preferences. I like it even darker so between 35-45 but in most cases, it will be a good balance to set it to 49.
The Steam overlay is not HDR compatible in either of these formats. The characteristics are:
scRGB: Steam overlay is extremely dim because its white-level is only 80 nits.
HDR10: Steam overlay is oversaturated into outerspace because it thinks it's rendering in Rec709 but it's actually Rec2020.
I used this method a couple weeks ago and it worked, but my game would CTD within a half hour after every time. As of today this method no longer works at all. Playing this with the AW3423DWF which would make this game just look absurdly good, pretty disappointing that this is a AAA game and somehow no one at the studio has noticed.