The product sounds similar to the ubiquitous HDPVR from Hauppauge. The encoder essentially takes a video source from HDMI or component video, utilizes hardware compression, and then streams the compressed video via USB for capture. Copyright protections via HDCP generally make HDMI a bit of a headache, but if you can get an analog component signal out of a device, you should be golden.
Mac users may be particularly keen on this as last checked the Hauppauge doesn't have official Mac support, although the third-party HDPVRCapture utility works great.
Similar to the HDPVR, the device should pass the video through to be viewed unaltered on a display. This is important for game play as it introduces minimal lag. The encoder accepts 480p, 576p, 720p, and 1080i signals, and requires a Mac running OS X 10.7 with a dual-core CPU.
The Game Capture HD is expected to ship in June for $200.
Elgato Game Capture HD PlayStation 3/Xbox 360 Recorder for Mac/PC
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