alt Hacker NewsHypervisor anti-cheat is old hat. The current 'state of the art' is either a DMA card that pretends to be a sound or network card but really is constantly reading and writing directly to RAM in the game's memory space.
The other 'state of the art' which is much cheaper, easier, and essentially impossible to detect on a hardware/equipment level, are the AI-based systems that examine the video and generate inputs via USB, emulating controllers or keyboards and mice. It's a huge problem on console right now and can only be detected via server-side analysis.
The real state of the art is single-game machines.
Instead of running the game in some arbitrary computer, you'd require players to buy your dedicated hardware, a black box that runs the game and nothing else.