<absolute> is a child of <mouse_pointer> and determines wether the pointer mode is absolute or relative.
A mouse pointer in absolute mode will have an origin or center set and will always be moving away from that location, this mode is useful for games where you're needing a fast reactive cursor, best for RTS games or anything purely cursor based.
A mouse pointer in relative mode has no origin and can be moved infinitely in any direction, it can also be "ratcheted". Relative cursors are ideal for FPS games where you will be looking around an environment and have minimal usage of an actual loose cursor.
<mode> will override this tag's value