If you're planning to live stream on platforms like Twitch or YouTube Live, you typically have two main options for video encoding.
You can either use your CPU for software encoding or leverage your Nvidia GPU for hardware encoding. While CPUs have traditionally been considered more reliable for quality, Nvidia's newer RTX graphics cards have significantly narrowed that gap "” and in many cases, they now outperform CPUs in both speed and efficiency.
The trade-off between CPU and GPU encoding has traditionally been quality versus performance. Live streaming requires compressing your video into a limited bitrate "” and with Twitch capping non-partnered streamers at around 6 Mbps, that's a tight limit for 1080p at 60 frames per second. The x264 software encoder (CPU-based) is known for delivering higher visual quality at lower bitrates, but it's also very CPU-intensive. If you're gaming and streaming on the same machine, CPU encoding can lead to dropped frames and stuttering. This is where GPU-based encoders like Nvidia's NVENC come in "” they offload the encoding workload with minimal impact on game performance.
If you're working with an older or less powerful CPU, using NVENC on your Nvidia GPU is a smart alternative. This method rarely affects gaming performance, since the encoding is offloaded to a dedicated chip on the GPU. However, the earlier versions of NVENC had a noticeable downside "” the video quality wasn't quite on par with x264 at bitrates around 6 Mbps or lower. While still usable, those older NVENC encoders tended to produce softer images and lose fine visual details.
But that was the older NVENC. With the introduction of Nvidia's RTX series "” starting with the Turing architecture (e.g., RTX 2080 Ti) "” the NVENC encoder saw a major upgrade. The improved hardware encoder now delivers image quality that rivals, and in many cases surpasses, x264's "very fast" preset "” all while using far less CPU power.
So how do these two encoding methods compare today? Overall, they're quite close in performance for most streamers. x264 still offers better quality at lower bitrates if you use slower presets like medium or slow, but those require significant CPU power. NVENC, especially on RTX and newer GPUs, provides excellent quality with minimal system impact "” making it the better choice for live streaming on a single-PC setup.
For this comparison, I configured both NVENC and x264 to record at a bitrate of 6 Mbps in OBS Studio. Both were set to use the "High" profile with a keyframe interval of 2 seconds, while all other settings remained at their OBS defaults. I also included a sample of HEVC (H.265) 4K footage recorded at 160 Mbps to showcase higher-resolution encoding performance.
To see the most ideal examination, you should watch the video at the top in 4K. In any case, I'll include some screenshots below that demonstrate both encoders in their real-world settings.
x264 Handles Brightness Transitions Better
NVENC still struggles slightly with transitions from dark to bright areas. In the example below, the orange-yellow light in the bottom right corner appears to cause compression artifacts in the GPU-encoded output. Meanwhile, the CPU-based x264 encoder maintains a much closer resemblance to the high-bitrate 160 Mbps HEVC 4K reference footage, preserving detail and smooth gradient transitions.
You may also notice how the white ceiling light causes visual distortion in the NVENC-encoded version, particularly in the surrounding areas. Once again, the CPU encoder (x264) delivers image quality that is far more consistent and closer to what you'd expect from high-bitrate recordings.
NVENC Outperforms x264 in Fast-Paced Gameplay
While x264 is strong in preserving detail during static or slow-moving scenes, it struggles with fast-paced gameplay. I used Rocket League as a test case due to its rapid camera movements and high on-screen action "” a perfect scenario for testing compression under stress. In this context, NVENC clearly outperforms x264, handling rapid transitions and visual chaos far more efficiently.
Take this comparison screenshot from a quick camera pan during gameplay. The NVENC-encoded footage looks noticeably sharper, while the x264 version appears soft and blurred. This degradation is visible both near the camera and in distant elements. For instance, the teal-colored car maintains smooth, consistent color with NVENC, but x264 introduces blotchy compression artifacts. The court texture and crowd detail also look significantly more washed out with x264.
One of NVENC's biggest strengths is its ability to quickly process scenes with lots of fine, fast-moving elements. In Rocket League, the hexagonal pattern on the playfield moves rapidly beneath the vehicle "” a pattern x264 encoding consistently fails to preserve clearly. NVENC, by contrast, keeps those crisp geometric details intact in most frames.
That said, NVENC isn't perfect. In very fast transitions, you may still encounter a few frames where detail gets smeared or lost "” a side effect seen when pausing at certain moments in the footage. However, these instances are noticeably less frequent with NVENC than with x264, making it the more reliable choice for high-motion content.
NVENC Delivers Sharper Text for Streaming
Finally "” and most importantly for streamers "” NVENC handles on-screen text significantly better than x264. At a distance, x264 often blurs small text, making it difficult or impossible to read. In contrast, NVENC preserves clarity and sharpness, ensuring that UI elements, in-game labels, and overlays remain legible.
This clarity is critical on platforms like Twitch, where viewers rely on small on-screen text for things like usernames, health bars, scores, or even streamer tags. When text becomes unreadable, it can disrupt the viewing experience and cause frustration "” whether it's not being able to identify your favorite streamer or read critical in-game information like street signs or objectives.
x264's blurring issue mostly occurs when the text is small, distant, or in motion "” which, unfortunately, describes a large portion of what's visible during fast-paced games like Rocket League or most first-person shooters. This makes NVENC the more practical option for competitive streaming where every visual detail counts.
Final Verdict: NVENC Wins "” With a Caveat
All things considered, I'd choose NVENC for live streaming. Its ability to maintain sharper text and fewer visual artifacts during fast-paced scenes is a game-changer. While x264 isn't bad by any means, especially at higher bitrates, NVENC at 6 Mbps delivers real advantages for streamers seeking smooth, high-quality broadcasts.
That said, not everything is equal. The latest version of NVENC is only available on Nvidia RTX GPUs, which are relatively expensive. For example, the RTX 2070 still costs around $600 "” nearly double the price of a powerful CPU like the AMD Ryzen 7 2700X. And that CPU offers 8 cores with simultaneous multithreading, making it well-suited for both gaming and streaming at once with minimal performance loss.
Of course, exceptions exist. Some modern games "” like the latest Assassin's Creed titles "” fully utilize all available CPU threads, sometimes requiring 8 cores or more. In those cases, CPU encoding might strain performance. Still, if you're weighing cost vs. benefit, I wouldn't recommend buying an RTX card solely for NVENC. A strong 6-core or newer-generation CPU can still handle most streaming needs effectively.
That said, if you already own an RTX card, NVENC is the clear winner. It's simply the better option for streaming "” offering the perfect blend of quality, efficiency, and minimal system impact.
Check out Intel vs. AMD.