In my opinion there are two ways to record PC gameplay footage - Software and Hardware.
Software Based Recording:
PC Specs (recommended): Quad Core, 4GB, and a secondary harddrive for your recorded footage. Graphics card is dependent on your games of choice.
Software: FRAPS, Dxtory, OBS, Bandicam, MSI Afterburner
Price: Varies depending on PC specs (free to $2000)
Pros:
- Great solution for new YouTubers
- Minimal cost assuming you have the supported specs
- High quality recording
Cons:
- Performance hit (varies game-to-game, some worst than others)
- Large file sizes (can be tweaked in Dxtory, OBS)
- Minimal success with recording retro or web games (FRAPS is capable, Dxtory can only record games and not your desktop)
- Potentially getting kicked from online games due to false positives (I have gotten kicked a few times in Punkbuster enabled games due to FRAPS and Dxtory running)
The great thing about using a Software based recording setup is pretty much any respectable gaming setup can do it to some degree of success. There are also paid and free options available to record making it a great place to start for YouTubers just starting their journey.
The one big knock against software recording is the large file sizes (especially FRAPS) and the performance hit when the software is recording.
Hardware Based Recording:
PC Specs (recommended): HDMI capable graphics card (most if not all cards on the market now have this), PC specs to run your game of choice at either 720p or 1080p resolutions.
Hardware: Elgato Game Capture HD, Hauppauge HD PVR 2, Avermedia Game Broadcaster HD, Hauppauge Colossus (720p only). Additionally, you may require additional accessories such as extra cables and perhaps a HDMI splitter if your device doesn't have real-time HDMI pass-through.
Price: $100 - $200, plus additional costs for accessories if needed.
Pros:
- Lag free gaming, no slow down on PC
- Will capture everything shown on PC (great for retro or web gaming)
- Timeshifting (Elgato Game Capture HD only)
- Small file size, you can record nonstop for hours
- Also compatible with consoles
Cons:
- Price
- Additional wiring (depending on setup)
The best reason to use a hardware based solution like this is all of these devices have a minimal footprint on your computer's performance. Since these devices do all of the hardwork on-board (most if not all encode directly to H.264 for tiny file sizes), this leaves your PC free to produce those luscious jungles in Crysis or those creepy corridors in Metro: Last Light without a performance drop. This method is highly recommended where twitch or fast paced gameplay is required - Quake, StarCraft, etc.
Additionally, if you have a second computer or laptop lying around, you can live stream without any negative effects on your PC or gameplay (apart from your internet speed of course), since the secondary PC will be doing the heavy lifting to produce and upload the stream thus leaving your main PC available for just gaming.
Another plus side is that one device (the Elgato Game Capture HD) is capable of timeshifting. Essentially it always records (buffers 1-2 hours) allowing you to go back and grab that sick triple no-scope. This is great since you never have to hit record (you do need the software open though).
The major drawback to this method is of course cost. The device alone will set you back $200, not for the YouTuber who is just starting out.
