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TL;DW:
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FSR 3 is frame generation, similar to DLSS 3. It can greatly increase FPS to 2-3x.
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FSR 3 can run on any GPU, including consoles. They made a point about how it would be dumb to limit it to only the newest generation of cards.
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Every DX11 & DX12 game can take advantage of this tech via HYPR-RX, which is AMD’s software for boosting frames and decreasing latency.
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Games will start using it by early fall, public launch will be by Q1 2024
It’s left to be seen how good or noticeable FSR3 will be, but if it actually runs well I think we can expect tons of games (especially on console) to make use of it.
I wouldnt say compete as the whole concept of frame generation is that it generates more frames when gpu resouces are idle/low due to another part of the chain is holding back the gpu from generating more frames. Its sorta like how I view hyperthreads on a cpu. They arent a full core, but its a thread that gets utilized when there are poonts in a cpu calculation that leaves a resouce unused (e.g if a core is using the AVX2 accerator to do some math, a hyperthread can for example, use the ALU that might not be in use to do something else because its free.)
It would only compete if the time it takes to generate one additional frame is longer than the time a gpu is free due to some bottleneck in the chain.