A video processing method and system for generating a foveated video display with sections having different resolutions uses a network channel for communicating video images having video sections of different resolutions, and includes a video transmission system for processing and transmitting the received video images over the network channel. The system assigns a larger portion of the network channel's bandwidth to a video section with higher resolution. Further, the system includes a video receiving system for receiving and seamlessly combining the first and second video sections of different resolutions to form an output video image on a display device, and a control unit for sending one or more video control parameters to the video transmission system to control capturing, transmitting and processing of the video images.