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Wow, there are some regards in which Steam is really lagging behind Xfire. But I guess that's to be expected from a service that just recently got a screenshots feature (and I'm talking about the service here, not individual games).

Garnett said:

In game video recording? Excellent, just hope it doesnt lag like Xfire does.

Video recording tends to use the hard drive - usually the same one you have your game on - as well as definitely requiring some processing power. Don't expect this to have no impact at all.