Most cheaper laptops do not include a full-blown graphics board with expensive dedicated graphics memory. Instead, system memory is shared between the CPU and the graphics subsystem.
How much memory actually is reserved for graphics purposes depends on the software you are running. The frame buffer (the memory used to store the pixels on your desktop) is only part of it - games, for example use a lot of memory to store textures and geometry data.
- Minimum Graphics Memory: 128 MB
The smallest memory size your system must reserve for CPU/Graphics sharing.
- Maximum Graphics Memory: 1341 MB
The largest chunk your system can configure for sharing.
From the DirectX report you can see, it currently uses 27 MB only.
Your laptop lacks the CPU and graphics power to run high demand games anyway, so 128 MB of shared memory should be sufficient. You can configure this to 256 or 512 MB in the BIOS configuration menu, but I doubt it will make any noticeable difference for you.
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