Personally I use FRAPS, to record in 1080p, and I have Dxtory as a backup, both are cheaper than Camtasia, but can't record selected areas. FRAPS is straight forward and simple, but has a few issues. Dxtory has a few 'different' features, such as multi-channel audio recording, and also doesn't drop FPS as much as FRAPS, but to use Dxtory you better have at least 8gb of RAM to write a 30 FPS video, or else the video will start to freeze on the same frame. People also use video editing to make their videos a little better, if you're focusing on console gameplay I suggest getting a simple Macbook Pro and getting Final Cut Pro X on it, and an Elgato Game Capture HD. If you want a Windows system for recording PC and console, I either suggest Adobe Premiere Pro, or Sony Vegas Pro for editing. Another good thing for making videos is Adobe Photoshop. Overall you're going to have to spend some money to make your videos look good, don't go into this thinking you can use Unregistered Hypercam 2 and use Windows Movie Maker to edit.
The Meaning of Life, the Universe, and Everything.
To everyone who said Bandicam, are you serious? Bandicam has got to be one of the worst video recording software EVER. The annoying watermark and the intense lag spike every time you use it is just unacceptable. (And no, it's not my computer, because I use Fraps and it works just fine.) Although I can say I have never tried the full version, who would want to use a program that costs a ridiculous $40.00 USD to (I think) even work well? Forty bucks doesn't count as "cheap" (which the submitter of this thread specifically said for it to be cheap).
Anyway, what I would suggest that if you are looking for something free, I'm not sure. If you want to spend money though, you can buy Fraps (which is half the price of Bandicam).
They all use fraps because its best it has no lag no fps failure very good quality and overall is prefered by captainsparklez and seanannersThey all use fraps becasue its best and sorry for my last post i forgot to add A FONT!!