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Dunno whether they are transcoding or not nor why they have such a bizarre setup. But I would hope 16C/32T CPU from 2017 could handle software transcoding. Also peak power consumption while playing a movie does not really matter compared to idle power consumption. What matters more is that the motherboard is probably packed with pcie slots that consume a lot of power. But to OP it probably does not matter if they use a threadripper.
I didn't say it couldn't handle it. Just that it was very inefficient.
I mentioned both things. Did you actually read my comments?