Funnily enough I'm waiting for my hdmi to usb capture card to arrive so I can play on my PS3 while also having the option of switching back to the desktop instantly.
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Although honestly I think some of the latency complaints by gamers are a little much. Personally I have a Bluetooth mouse/keyboard connected to my desktop with a super duper cheap projector pointed into the living room and can play FPS games on it just fine.