Antialiasing reduces the jagged edges you see in games by rendering each scene more than once. Modern antialiasing uses the rotated-grid method which rotates and alters the colors of the original render. In other words, antialiasing slightly "blurs" the frame to remove jaggies. Theoretically, 2x antialiasing reduces performace by 1/2 and 4x by 1/4, but bandwidth and processing enhancements in the GPU and memory controller alleviatge this. The biggest performance hit usually comes from No Antialiasing ---> 2x Antialiasing. In FPS like XIII, antaliasing (or AA) will reduce performance considerably because FPS are generally more graphics card dependent. In RTS games like Warcraft 3, the percentage of performance drop won't be so high since those games are more system dependent.