Rixasha: It looks to me like insufficient bitrate. At a glance your video resolution seems to be 1280x720 at 30 fps and your bitrate is about 560 kbps. For this resolution (although at 60fps) youtube suggests from 2250 to 6000 kbps.
If you can't increase bitrate, can you reduce the image size? The game looks like it's in much smaller resolution to begin with.
BananaJane: Yeah 2250 makes the stream go instantly into the red with dropped frames
So you're saying I should lower my monitor resolution?
* Your monitor resolution does not affect the stream beyond having the game take less processing power (so that more is available for the video processing).
* Your internet upload speed decides how much data you can send per second.
* Your video bitrate says how much data you are
trying to push per second.
* Your video output resolution decides how much data is required for each frame.
* While compression (such as h264) does lower the amount of data required for each frame, higher compression also gives a lower quality ("pixel blobs") because a lot of data has to be thrown away in order to fit within the constraints (your upload speed).
Given this information, you need to lower your video bitrate quite a bit, and in order to make the video look decent, you also need to lower the resolution.
Look at these example JPEG images, hey are of similar filesizes to represent the same bitrate. Notice how the smaller looks much better than the larger one? With the constraint of datasize, they both try to represent whatever detail should exist in the image, and since the smaller image has less detail by default, it's much easier. The larger image is more compressed. Now try to upload 25-30 of these
each second with your internet connection, image quality will suffer in order to make that possible (I mean, you're not pushing 25-30 JPEGs each second, as video encoding takes the previous frames into account and only encodes differences, so there's some savings there, but you get the idea).
In your streaming application, you should be able to set the output resolution, and the application will scale the captured video as it is sent out to the streaming service.