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To use hardware encoding you'll have to have hardware with a dedicated encoder. If you've got an Intel Processor with QuickSync (Haswell, Ivy Bridge and some Sandy Bridge) or a recent Nvidia Geforce GTX card (GTX 650 or newer, but not laptop cards) you've got a dedicated video encoder in your system. Utilizing this hardware would have almost no measurable impact on a game's performance, as the heavily lifting of encoding the video is being done by completely different hardware from the CPU and GPU that are tasked with rendering your game.
Someone will have to fill me in if ATI has included encoding hardware on any CPUs or GPUs.
The software-only state of the current beta is currently killing my In-Home streaming performance. I have a GTX 760 so hardware encoding would probably would great, but my CPU is woefully underpowered, so streaming destroys game performance and I'm getting lots of that "Slow Encode" message in the performance overlay.
Interesting, so I could potentially offload the actual "streaming" process to quicksync on my Ivy Bridge CPU in combination with using my AMD GPU? (Or would I have to be using the integrated CPU graphics in order to utilize quicksync?)
Thanks, that helped a lot. The experience still isn't good, but at least it's playable (if not just barely) for several games. Looking forward to when the beta supports hardware encoding.
Actually, you're right that there isn't any setting for hardware encode, I skimmed too quickly. It's definitely for disabling "decoding." Some Valve employees have made it clear that it's coming, so I just assumed it was a non-functional place-holder.
AMD Radeons have had hardware video codecs for a while now. Its called VCE and UVD. AMD APUs also have the same hardware video codecs. The FX CPUs without a GPU probably doesn't have a dedicated codec.