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I'm trying to make a videogame review video, with the help of a friend. I'd rather have each of us in different places, so that I can record our audio independently. But then I have a bigger problem : I need to record my screen AND stream it live to my friend at the same time ! Is it feasible ?

I record using Fraps and I'm happy with it, and the stream doesn't have to be HD, just nice enough to see what is going on.

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It is unlikely that you will be able to do that. To stream a high quality video over a home Internet connection is going to take a LOT of complex compression. Compression is both memory, CPU and possibly GPU intensive and running a game is also CPU, memory and GPU intensive. This is why the files that FRAPS produces are so massive. They apply minimal compression to make sure that it doesn't have more of an impact on the game than necessary.

What you could do is play the game, record the video portion, compress it (possibly to a really low quality version so that you can stream it quickly), stream it and record both of your dialog, then mix the dialog back with the higher quality version of the video.

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recording the game then the audio is what I'm doing now, but I'd like having immediate reactions :) – Manu Jun 7 '13 at 6:36
Yeah, not gonna happen unless the game has a spectator mode that can render it on his PC rather than send video data. It would be hard to do even with a top end rig with custom encoding hardware and a dedicated lan connection. – AJ Henderson Jun 8 '13 at 3:29

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