i have the latest model,
quick question does the pi doesn't have hardware video decoding?
i just tried to install vlc in raspbian and played a 720p movie, the thing is struggling to play it. not sure if its just the sd card i got or i am missing something
It does have hw acceleration, although it is rather limited (Still, supposed to be able to play 1080p video just fine). You can increase the video memory through raspbian settings, it gives better results.