Instead of rendering the game at full resolution, it renders it at a lower resolution. Then it blows it up back to full resolution. Since the lower resolution render has fewer pixels, there are holes it needs to fill. It uses an algorithm to guess what those pixels should be and fills them in.
End result, the game looks like it’s full resolution even though some of the pixels are just guesses. Since the algorithm for guessing the pixels is wayyyy easier than actually rendering them, you get increased performance. Depending on the guessing algorithm and the difference in resolution, it can be difficult to tell the difference.
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