• Sat. Oct 4th, 2025

Live Streaming Hardware Encoders: What Beginners Need to Know

ByPaul Wells

Sep 11, 2025

If you’re serious about live streaming, you’ve probably heard the term “hardware encoder” thrown around in forums and YouTube tutorials. But what exactly are they, and do you really need one? Let’s break it down in plain English.

What Is a Hardware Encoder Anyway?

As you search for a guide to hardware encoders, think of the hardware encoder as a dedicated computer whose only job is to compress your video and audio into a format that streaming platforms can handle. Unlike software encoders that rely on your computer’s CPU or GPU, hardware encoders are standalone devices built specifically for this task.

Your computer normally has to juggle multiple tasks – running your streaming software, managing your game, handling chat interactions, and encoding your stream. A hardware encoder takes that last burden off your computer’s shoulders entirely.

Why You Might Want One

The biggest advantage? Consistent performance. Hardware encoders don’t get bogged down by other programs or suddenly spike your CPU usage when Windows decides to run an update in the background. They just work.

You’ll also notice better stream quality at lower bitrates. This matters because most streaming platforms have bitrate limits, and hardware encoders are typically more efficient at squeezing quality out of those constraints.

For streamers dealing with older computers or laptops, hardware encoders can be a game-changer. They allow you to stream high-quality content even if your main machine struggles with encoding.

Popular Options for Beginners

The Elgato Stream Deck series has made hardware encoding more accessible than ever. Their HD60 S+ is a solid entry point that handles 1080p60 without breaking the bank.

AVerMedia also offers competitive options like their Live Gamer series. These devices often provide similar quality at slightly lower price points.

If you’re looking at professional-grade options, Blackmagic Design’s ATEM Mini series combines encoding with video switching capabilities. It’s overkill for basic streaming but invaluable if you plan to use multiple cameras or sources.

What to Consider Before Buying

First, check your streaming platform’s requirements. Some encoders work better with Twitch, while others are optimized for YouTube or Facebook Gaming.

Connection types matter too. USB 3.0 is common for consumer models, but you might want Thunderbolt or PCIe options for higher-end setups. Make sure your computer has the right ports.

Don’t forget about latency. While hardware encoders reduce CPU load, they can add a slight delay between your actions and what viewers see. For most content, this isn’t noticeable, but competitive gamers might prefer software encoding for the lowest possible latency.

Budget is obviously a factor. Entry-level hardware encoders start around $150, while professional units can cost thousands. Consider what features you actually need versus what sounds cool.

Making the Right Choice

You don’t need a hardware encoder to start streaming. Software encoding through OBS or similar programs works fine for most beginners. But if you’re experiencing dropped frames, high CPU usage, or quality issues, a hardware encoder might solve those problems.

Start by identifying your specific pain points. Are you dropping frames during intense gaming sessions? Is your older laptop struggling to maintain quality? These are good indicators that hardware encoding could help.

The streaming world can seem overwhelming with all its technical jargon and equipment options. Hardware encoders are just one piece of the puzzle, but they can be a valuable piece when used correctly.