A system and method transcodes an input video bit stream having a first encoding profile into an output video bit stream having a second encoding profile. The system includes a first module (302) and a second module (306). The system further includes a memory module (304). The first module (302) decodes the input video bit stream for generating pixel data and macroblock specifications. The second module (306) encodes the pixel data and the macroblock specifications for constructing the output video bit stream. The memory module (304) includes a first buffer module and a second buffer module. The first buffer module stores the pixel data and the second buffer module stores the macroblock specifications.