Over the last years, video streaming has become one of the most dominant Internet services. Due to the increased availability of high-speed Internet access, multimedia services are becoming more interactive. Examples of such applications are both cloud gaming and systems where users can interact with high-resolution content. During the last few years, programmable hardware video encoders have been built into commodity hardware such as CPUs and GPUs. We evaluate one of these encoders in a scenario where we have individual streams delivered to the end users. Our results show that the visual video quality and the frame size of the hardware-based encoder are comparable to a software-based approach. To evaluate a complete system, we have implemented our proposed streaming pipeline into Quake III. We found that running the game on a remote server and streaming the video output to a client web browser located in a typical home environment is possible and enjoyable. The interaction latency is measured to be less than 90 ms, which is below what is reported for OnLive in a similar environment