When hardware acceleration is used by a software, the extra processing power of the computer's graphics card (GPU) is utilized in addition to the regular CPU. This dramatically increases the speed and performance of the given task such as video encoding or playback while at the same time lowering the CPU load. Other benefits can also be better battery life (for laptops) and improved computer function.
For more information on hardware accelerated playback in the DivX Player go here.
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