Multi-boxing is the art of controlling multiple characters simultaneously. Initially named after the need to use multiple computers to accomplish.
This can be done using different methods. Primarily a hardware method, and a software method. A hardware method is done using multiple PCs and controlling it by using splitters, multicasters, and switches. Basically you use one mouse and keyboard, but you can chose to multiply the signal to each PC, or using various switches send signals to specific PCs. This is a rather expensive option, but provides best results as each PC controls their own client with minimal slow downs.
The other option is software. A software which multiplies the signal it receives from the mouse or keyboard to specific applications. There are certain limitation to this method. The mouse cannot be used in all windows simultaneously. Although there are programs which let you pass in mouse clicks. It is very difficult, if not impossible to use mouse turn using these programs.
My Setup:
The method I use is entirely software. I use a single 19 inch monitor, with 1280 by 1024 resolution, on to which I fit 5 game clients. I use a key broadcasting software called Keyclone. Which has so far shown good results, however I have yet to try any others, so my opinion of it is still biased.
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