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Your performance issue may be because Cemu requires a LOT of CPU power, and you're also doing the encoding on your CPU as well.
And just to clarify.. it's not all that bad. I guess to the untrained eye it would look good but to me it's pixelated. More so than anything else on steam link.
I tried your suggestions but it was actually slightly worse. I did however fix the performance issue.. I switched the fullscreen setting in Cemu from "Keep aspect ratio" to "Stretch". That made the preformace much better. Less stutter.
The most optimal settings for the Steam Link for me are NVFBC enabled with Hardware Encoding enabled in Nvidia GPU as well as Harware encoding disabled on the client. This produces the nicest looking picture for my other games but still pixalted in Cemu.
I am starting to think it's something to do with how Steam Link is handling the application (cemu) while in Full screen. It's tough to say and I can only speculate but when I play Cemu on my PC.. it's so damn beautiful looking I wanna cry...
I was looking into it the Nvidia shield the other day. Price point is a little high but if that means better quality, I don't mind. In-home streaming will become more of a thing in the next couple of years anyways. I heard they are building smart tv's that have built in Steam Link type functionailty.
The Steam Link is good for what it does but requires lots of tweaking to get it just right. And I know people say to just hook it up with an ethernet cable but doesnt that defeat the whole convenience thing of in-home Streaming?
That's true, I use an ethernet cable. I think game streaming is very hard to get right over wireless, because you have input latency to worry about, as well as a higher frame-rate. There's simply more data than something like Netflix, and it has to get there a lot more quickly.