In this paper, the main objective is to adjust the quantization parameters according to the visual properties to improve coding performance. In order to view the effect levels and to know if the adjustment of quantization parameters is reasonable, three experiments were designed. Then a perceptual analysis module which crosses the spatial and temporal considerations is proposed. The final quantization parameters are adjusted based on the algorithms. The experimental results show that the test sequences can save about 3%–21% bit-rates without any significant difference in the visual qualities. In terms of the hardware implementation, the perceptual module is designed in a way which can be applied to a 2-stage MB pipeline encoder. The device is designed to gratify the needs for the encoder to achieve real time video compression specification.