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I'm going to order a new Mac mini and Studio Display XDR, but I'm confused about the performance penalty for using a high-spec display.

I originally considered an M5 with 24gb RAM would be sufficient for my needs - Lightroom CC, light gaming (Two Point Hospital, RCT 1) - but I'm led to believe that a 5k output at 120hz will require greater RAM and CPU headroom.

Any help would be greatly appreciated as I've not owned a display greater than 2k 60hz before! And for context, my current daily driver for the above needs is an M1 Pro MBP with 16gb RAM.

Many thanks
 
The Mac mini currently doesn't ship with the M5. If you want to be able to drive 5K 120hz you will need the M4 Pro variant of the mini since it ships with Thunderbolt 5.

5K is a lot of pixels, significantly more than pixels than 4K let alone 2K/1440p. The GPU will be used more to drive those pixels and both the GPU and CPU are needed to maintain the framerate, and with how Apple silicon works that will mean more memory used. This shouldn't be a problem while on the desktop or doing regular computer things like web browsing, emails, and the like. Also, it's worth pointing out I wouldn't know what numbers to expect in terms of usage percentages and the like off the top of my head. I want to say photo editing shouldn't be too big a deal since most of what Lightroom will be rendering is the GUI, but don't quote me on that since I've never touched Lightroom so I don't know where the hardware stressors may be. For light gaming the M4 Pro should be fine, but you may still not be able to comfortably push the visuals to the max.
 
If you want to be able to drive 5K 120hz you will need the M4 Pro variant of the mini since it ships with Thunderbolt 5.
5K 120Hz does not need Thunderbolt 5.

Models with these support 5K 120Hz:
M2 Pro, M2 Max, M2 Ultra
M3 Pro, M3 Max, M3 Ultra
M4, M4 Pro, M4 Max
M5, M5 Pro, M5 Max

 
The Mac mini currently doesn't ship with the M5. If you want to be able to drive 5K 120hz you will need the M4 Pro variant of the mini since it ships with Thunderbolt 5.

5K is a lot of pixels, significantly more than pixels than 4K let alone 2K/1440p. The GPU will be used more to drive those pixels and both the GPU and CPU are needed to maintain the framerate, and with how Apple silicon works that will mean more memory used. This shouldn't be a problem while on the desktop or doing regular computer things like web browsing, emails, and the like. Also, it's worth pointing out I wouldn't know what numbers to expect in terms of usage percentages and the like off the top of my head. I want to say photo editing shouldn't be too big a deal since most of what Lightroom will be rendering is the GUI, but don't quote me on that since I've never touched Lightroom so I don't know where the hardware stressors may be. For light gaming the M4 Pro should be fine, but you may still not be able to comfortably push the visuals to the max.
This is really good to know. Thanks!
 
5K 120Hz does not need Thunderbolt 5.

Models with these support 5K 120Hz:
M2 Pro, M2 Max, M2 Ultra
M3 Pro, M3 Max, M3 Ultra
M4, M4 Pro, M4 Max
M5, M5 Pro, M5 Max

Thunderbolt 4 doesn't have enough bandwidth to natively push 5K 120hz, so I assume M2 Pro - M4 Macs must use Display Stream Compression?
 
A19 Pro in the XDR also has 12 GB RAM if that makes a difference. So far as I understand the A19 Pro in the XDR handles camera processing, audio processing, local dimming algorithms, and HDR, as well as speakers and centre stage etc to take the load off the computer.

The XDR also has and Apple-designed timing controller (TCON). This does help to drive the 120 hz refresh and mini LEDs.

But I think the 5k 120 HZ pixel rendering is still done by the computer GPU. Some one more knowledgeable than me will know.

However, the main issue (I think) is actually memory bandwidth and number of cores as opposed to shared RAM on the SoC. And the display output controller is different, and able to handle the 120hz on the M4 Pro/Max SoC vs the standard M4, again this is not a shared RAM issue either.

Because you can have an M4 24 GB which won't power the 5K at 120 hz but a M4 Pro with more cores and bandwidth but same RAM at 24 GB that will power it just fine, which might answer your original question.
 
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