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Hardware vs Software Streaming Encoders: Which Should You Use?

9/22/2025 · Streaming · 7 min

Hardware vs Software Streaming Encoders: Which Should You Use?

TL;DR

  • Hardware encoders like NVENC and Quick Sync offload encoding to dedicated silicon, reducing CPU load and lowering latency at the cost of some quality per bitrate compared to top-tier software encoders.
  • Software encoders such as x264 can deliver superior quality at the same bitrate, but they can be CPU heavy and increase system load.
  • Choose hardware encoding if you stream gameplay while playing on the same PC, use multiple apps, or need low CPU overhead. Choose software encoding if you have spare CPU cores and want the best visual quality at a given bitrate.

Encoder types at a glance

  • Hardware encoders: NVENC (NVIDIA), Quick Sync (Intel), AMF/VCE (AMD). Fast and efficient with dedicated hardware blocks.
  • Software encoders: x264 or x265 running on CPU. Very tunable and capable of higher quality per bitrate when set correctly.
  • Hybrid setups: Use hardware for live gameplay and software for record or higher quality VODs. Some streaming apps support using both simultaneously.

Quality vs performance

  • At the same bitrate, a well tuned software encoder often outperforms hardware encoders in subjective detail and artifact control.
  • Recent hardware encoders have closed the gap considerably. Modern NVENC can be close to medium or even high presets of x264 for many scenes.
  • If you need to stream at low bitrates, x264 at slower presets can look better. If you have limited bitrate or want minimal CPU impact, hardware is the practical choice.

CPU and system considerations

  • Software encoding uses CPU cores. Expect higher CPU usage and possible frame drops if the CPU is already under load from games or apps.
  • Hardware encoding moves work to the GPU or dedicated encoder, leaving CPU free for the game and other tasks. This is especially helpful on midrange systems.
  • On laptops, hardware encoding can also reduce power and thermal strain compared to maxing out the CPU.

Latency and stability

  • Hardware encoders often introduce lower end-to-end latency because they process frames faster and with less queuing.
  • Software encoders can add extra buffering and increase latency, especially with slower presets. For competitive low latency streams, hardware is frequently preferred.

Bitrate and presets explained

  • If you have plenty of bitrate, both hardware and software can look excellent. The differences emerge under constrained bitrates.
  • Software presets: slower presets allocate more CPU time and yield better compression efficiency. Good for VODs or high quality streams when latency is less critical.
  • Hardware quality options vary by vendor. Newer encoders offer quality modes and tune options that improve visual results.

Platform and app support

  • OBS Studio, Streamlabs, XSplit and many broadcast tools support both hardware and software encoders. Check encoding settings and do test recordings.
  • Consoles and some capture devices rely on hardware encoding. For those setups, software encoding is not applicable.

Best use cases by setup

  • Entry level or mixed use laptop: Use hardware encoding to avoid throttling and keep the system responsive.
  • Midrange gaming PC that streams and records: NVENC for streaming, x264 medium or slower for local recording if you want a high quality archive.
  • High end desktop with many CPU cores: Consider x264 slower preset for the best quality at limited bitrate, or NVENC for lower latency when playing competitive games.
  • Multi-PC streaming rigs: Use hardware on the capture PC and software on the dedicated encoder PC if you need maximum quality.

Quick settings guide

  • For low latency live streams: hardware encoder, high performance preset, CBR bitrate that matches platform recommendations.
  • For best quality VOD or archive: x264 at veryfast or faster presets on a powerful CPU, higher bitrate, and two-pass or CRF workflows for recording.
  • If bandwidth is limited: test both encoders at your target bitrate and compare recordings to decide which looks better for your content type.

Checklist before you go live

  • Check CPU and GPU usage during a test stream.
  • Test encoding at your intended bitrate and resolution.
  • Compare recorded clips from hardware and software encoders to judge subjective quality.
  • Confirm platform recommendations for bitrate and resolution to avoid platform-induced reencoding.

Bottom line

Hardware encoders now offer excellent quality with low system impact and are the pragmatic choice for most streamers who play on the same machine or need low latency. Software encoders still shine when maximum compression efficiency and fine tuned visual quality are the priority and you have spare CPU horsepower. Run simple A/B tests at your target bitrate to pick the best option for your content and hardware.

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