Running a game is like this: Imagine I give you a bunch of paper and a pencil. I tell you draw me a rabbit and give me the picture when you are done. When you are done, I tell you move the rabbit a little bit in the next picture, or change the angle a little bit, or maybe both, or maybe neither, and you draw me the next picture. Maybe I tell you I don’t care so much about how the rabbit looks and you can draw faster (low settings in a game), or maybe I tell you I want a super good looking rabbit and it takes you a really long time per picture (high settings). Maybe you are a fast drawer and can get them to me pretty quickly (good hardware), and maybe you aren’t so fast, or even aren’t capable of drawing rabbits at all (bad hardware). Even if you are a great drawer AND I’m okay with a mediocre rabbit, it takes time to draw them.
Playing a video is like this: Imagine I give you a bunch of rabbit drawings already completed and sorted, and I tell you to give the next one in order to me, once per second. It’s much faster, because you don’t have to draw the rabbit or worry about what it’s doing in the next picture – that’s already been done for you. Even though you might be pretty horrendous at rabbit drawing, it doesn’t matter – somebody else already did it, all you gotta do is hand them over on time.
That’s the difference between running a game or playing a video of it, although a computer will go much more quickly than a person drawing or handing over completed drawings.
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