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Do you have any info on why they dropped support for H264 hardware decoding?

The software decoder is fast enough: See https://forums.raspberrypi.com/viewtopic.php?p=2145762#p2145...

Or they did not want to pay for the license, or for the component.

The software decoder is not fast enough if you need to use the CPUs in parallel. So removing the hardware acceleration is a net loss of compute power.

So they don't have to pay the license.

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