While checking Xcode 8.2 changes I found that now we can record simulator using Terminal.
So I am trying to record video from iOS simulator as describe in this Apple Doc
this was also fixed in Xcode 8.3 Beta: http://adcdownload.apple.com/Developer_Tools/Xcode_8.3_beta/Release_Notes_for_Xcode_8.3_beta.pdf
• Videos recorded by the simctl tool of the xcrun command line tool now support scrubbing and import into video editors correctly. (29654098)
I did not test this currently but it is quite possible that in stable version of Xcode this bug will be fixed
Video recording is only supported on Macs that support Metal. If your system doesn't support metal, you will see an abort with that message. Yeah, we should make that error message more user friendly.
To see a list of supported systems, you can check out https://support.apple.com/en-us/HT205073