A game engine maps mouse inputs to turning degrees, not pixels. The pixels are just trying to display an approximation of "visible area underneath". You can move infinitely inside the angle covered by one pixel, and the display will change each time even though it hasn't "moved a pixel".Actually, I thought for competitive multiplayer a lower res will be beneficial. Because of the way the mouse is mapped to the pixels, there's more "finite" movements than there would be at higher resolutions (e.g. to move your mouse '1m' in the game, you'd have to only move 10 pixels versus 30 pixels at higher resolutions).
All steps up until rendering shouldn't care what resolution you are rendering at, aside from aspect ratio.
The benefits to a lower resolution have everything to do with pushing up the refresh rate/FPS on your monitor, and nothing else.
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