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Why do you think AMD GPU's/APU's can not decode H.264 streaming?
What amazes me is i can play all my Steam library games with no dedicated GPU; including DX11 games! The mobo, APU and RAM bundle cost less than half price of PS4 or XboxOne!
There are two PCI-E slots gagging on Radeon HD cards which could give more than 7GB GDDR (3 + 3 + 1) available to system....
I believe he is referencing to Shadowplay/Nvidia shield streaming. New Nvidia cards actually have a hardware H264 encoder built into the cards, AMD doesn't. The performance hit from game capture and encoding will be much higher with AMD hardware because of this, assuming Valve is even going to use the nvidia HW encoder.
DLNA = Digital Living Network Alliance gives the hardware option/principle http://en.wikipedia.org/wiki/Digital_Living_Network_Alliance
This page
http://mashable.com/2011/02/16/media-streaming-how-to/
helps define the hardware or software options for home streaming.
Rautapalli i don't think Steam machines will use the nVidia hardware streaming directly (users could if they wanted though but not part of SteamOS/Client)
Once beta testers have their hardware will be interesting to see what is what ie two streaming options on beta machines with GTX650 or better....
EDIT: Sorry, that quoted wrong :/
That is a good point. H.264 is great for encoding with multicore CPUs so any recent CPUs would be great anyway.
I don't think you guys should be worrying about h264 encoding if your running this from a rig that can play games decently, which is what the service is to be used for.
This has nothing to do with his question, it actually has nothing to do with streaming itself. The issue is how the video is encoded (whether it is saved locally or streamed is irrelevant in this case). Without a hardware encoder there could be a noticeable performance drop in some games if you don't have a beefy CPU.
And to answer OP's question: You are correct, they simply won't. They will use a software encoder instead. Whether Valve is even going to use the HW Nvidia encoder is still unknown also, for all we know it might be software encoding in both cases.
http://www.anandtech.com/show/5261/amd-radeon-hd-7970-review/9
and
http://forum.doom9.org/showthread.php?t=168462
Simply search web https://www.google.co.uk/#q=amd+h.264+encoder
Both of your sources are talking about hardware-accelerated encoding, it's not the same thing. Both AMD and NVidia cards have had the capability for years through OpenCL and Cuda, but it's horribly inefficient compared to software encoding (which by the way is even mentioned in the thread you linked) or actual dedicated hardware like the chip on nvidia kepler GPUs.
I shared links to try and show there are both hardware and software options for h.264 encoding using AMD hardware.
I use the NVENC-enabled ShadowPlay which records the last 5 or more minutes continously and offers Fraps-like recording as well, while not incurring any noticable performance hit (unlike Fraps e.g.).
Splashtop Gamepad also makes use of it and it's definitely better than all similar solutions (but still not perfect).
Must-have in my opinion.
And my point still stands. You do not seem to understand the difference between GPGPU and dedicated video encoder hardware.
(32 bit color depth * 1920 * 1080 * 60 Hz) / 1 Billion Bits = 3.98 Gbps
You could even send 120 FPS, but most TVs will only take 30 Hz input anyway.