ASSEMbler managed to get hold of an IS-NITRO-CAPTURE device and posted a video review online. The IS-NITRO-CAPTURE is made by Intelligent Systems, it's used by developers to playtest games, take raw screenshots, record direct feed video and debug. The unit can output video via it's 2 A/V-OUT ports on the back, and feed it to 2 separate TVs (one cable for each screen). Alternatively it can feed both screens to 1 TV which needs to be rotated on its side.
This kit can also connect to a PC via USB for the screenshot & video capture side. It was apparently unpopular with developers due to the high price which makes them hard to find now, ASSEMbler paid $3000 for his. I guess you could say that the hardware is almost outdated since Intelligent Systems sell a new kit for the DSi. This is the first time I've seen one opened up and explained in a video.
Why would it cost so much for a device to record and/or project video to different A/Vs?
one thing maybe, because this thing have system that can upscale the game without reducing the performance in good quality that means, more hardware, and more expensive stuff needed plus this thing is not public, should mention they only sell cheap stuff for public