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Are there performance improvements in each new Flash Player? And if so do you have to set the swf-version to an updated value?
Updating of Flash Player plugin you will get performance improvements. But if you change only Publish version - this will not affect on performance. Limiting publish version affects only feature availability.
So if you publish your swf for 10.3 player but you will have 11.7 plugin - you will get performance of 11.7 plugin.
But if your computer have on a board old plugin (10.3 for example) - you will get only 10.3 performance. Also you can't get newest features.
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Updating of Flash Player plugin you will get performance improvements. But if you change only Publish version - this will not affect on performance. Limiting publish version affects only feature availability.
So if you publish your swf for 10.3 player but you will have 11.7 plugin - you will get performance of 11.7 plugin.
But if your computer have on a board old plugin (10.3 for example) - you will get only 10.3 performance. Also you can't get newest features.
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In Flash Player, SWF versioning is primarily a mechansim for maintaining backwards compatiblity.
New features are tied to the version where they're introduced, but the important distinction is that we offer bug-for-bug backwards compatibility, with security as an exception.
If we encounter an API that works incorrectly in previous versions and the fix is likely to break existing content, we'll version-check the fix and apply it to only versions equal or greater to the SWF version where it's introduced.
I can't think of a good example where we've version-checked a performance fix off the top of my head, but it's definitely within the realm of possibility.
TLDR; You'll probably want to publish to the highest SWF version unless you have a good reason not to, especially now that background update is widely deployed.