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because i7 is designed for Windows 7 performance, it wasn't designed to zomg encode H.264 at blazing speeds, and I'm sure you know that video cards can encode 264 media faster than CPUs already anyways?

 

edit: ssj, it's based on transcoding, which is encoding, not decoding.

 

edit2: forgot to mention, since the Cell is very good at calculations, which is what encoding is about, so if you program the Cell to do that specific task, it'd be fast for sure, why would people be surprised by it?