You have to have a video card that supports it. Its hardware not software!
[EDIT]-
While it is hardware, it is also the name of graphic-rending software for 3D applications, used by game programmers.. It is both hardware AND software, though the two differ in purpose.
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The Shader Model is like software built into your graphics card. If your computer says it needs v2.0, you'll need to buy a new GPU.
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how to play batman arkham city model 3.0