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mechmouse: It can do 1080p video, depending on codec. Its all down to specialist video hardware that most mobile chips have now, but your old laptop doesn't.
Reminds me of annoyances... I recall trying to play some anime with mp4 encoding and blocks of it were decoded wrong and looked glitchy, yet worked fine on my computer. Probably the biggest reason i haven't used my Pi as much as i'd like.
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Spectre: Are there any alternatives to it because due to some possible conflicts of interest and their behavior during the GG controversy I would rather avoid them.
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dtgreene: There are alternatives, but I am not going to mention them because GG discussion doesn't belong in this thread. (Not to mention that you did not mention what GG stands for or what the controversy is.)
Didn't ask for a GG discussion, asked for alternatives.
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timppu: have any of you Pi owners found real uses for the device? Or is it simply a hobbyist machine, to marvel about its low price and small size?
I have used one (the old kind) to run RaspBMC/OSMC for streaming video files from my PC over the network to my old CRT television that doesn't have modern inputs like HDMI. It has done the job, but been a bit clunky, OSMC is total overkill for what I need it for and makes the simple task unnecessarily hard.

The CPU is weak, but the GPU has enough oomph to display fullhd videos of the supported types. I particularly like how this setup downscales 1080p video files for the TV without a hitch or complaint. Other solutions that I have tried have outright refused to play them, or then done a really poor job of it.

It can't run Netflix. I think there was some solution that would involve some software (that costs money) on a Windows computer that would act as a middle-man with Netflix, but that doesn't sound very handy.

I have no problem believing it would do just fine downloading my GOG library, since it's not a CPU intensive task.
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Rixasha: I have used one (the old kind) to run RaspBMC/OSMC for streaming video files from my PC <snip>

I have no problem believing it would do just fine downloading my GOG library, since it's not a CPU intensive task.
Hash integrity checks, and copying incoming data to files, no harder than using a torrent.
I got one of the first Raspberry PI computers and a power supply (which melted itself down). However, it's an awesome little Linux box, worked rather well and if you put about 20 of them into a briefcase, you'd have a NOC-in-a-box.

I think the toaster on sale this weekend has a better processor though. ;)