DirectX 12 provides major performance improvements over previous versions by optimizing the entire graphics stack and distributing work more efficiently between the application, engine, driver, operating system, and GPU. It uses a multi-threaded execution model with asynchronous resource access and command buffers, and supports features like execute indirect, multi-engine/multi-adapter for scalability. Hardware support is organized into feature levels to identify supported capabilities independent of the API version. Tools are integrated to help developers optimize their games and applications for DirectX 12.