TL;DW:
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FSR 3 is frame generation, similar to DLSS 3. It can greatly increase FPS to 2-3x.
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FSR 3 can run on any GPU, including consoles. They made a point about how it would be dumb to limit it to only the newest generation of cards.
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Every DX11 & DX12 game can take advantage of this tech via HYPR-RX, which is AMD’s software for boosting frames and decreasing latency.
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Games will start using it by early fall, public launch will be by Q1 2024
It’s left to be seen how good or noticeable FSR3 will be, but if it actually runs well I think we can expect tons of games (especially on console) to make use of it.
An upscaler cannot provide higher fidelity than than native providing all settings (other than resolution) are constant.
The upscaler is trained on higher resolution data and so it can more accurately depict subpixel and temporal information which is lost at native. DLSS can produce more detail than native in those cases.
Sounds impossible but it’s not. Check out some of Digital Foundry’s on DLSS 2; more detail was pulled out of the lower base resolution than even native.