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On your PC.
Steam > Settings > In Home Streaming > Advanced Host Options
Uncheck the HW encoding boxes. The result is your CPU will do the encoding instead of HW encoding on your GPU.
If disabling the HW encoding helps your performance, please post what graphics card and GPU you are using.
Suddenly, starting yesterday, the whole unit seems completely useless. I experience lag in and out of big picture mode, artifacts, independently moving mouse and in game it's completely unusable.
I tried disabling hardware encoder on both the client and the box and any combination, and absolutely no difference occurred.
The network tests I do (I have it wired from my PC and wireless from the link) show minimal delay, and I have a 980ti and 16gb ram for the record.
Very disappointed. I am only 1 room away with no wall in between my router/computer and the steam link, and I use pretty fast FIOS. It isn't my internet at all. I think that there was something with one of the new updates that did this. I tried switching from beta build to public build, and then back again. None of that worked. I tried the above suggestion of turning off HW encoding, and that didn't work either. My video card is a AMD Radeon HD 7800 Series.
I don't think it is a problem with my computer because again, it used to work just fine. I think it has something to do with an update to the Steam Link itself.
Edit: Noticed this topic is kinda all over the place date wise.
mattmroc how are you connecting your steam link to your router?
1: Open Steam
2: And Open Library and click the All games
3: And now find a game that you want
4: Right Click on it and you will see
Properties
5: You will see the SET LAUNCH OPTION...
6: Click on that and copy this thing
-dxlevel 80 +mat_antialias 0 window
7: After that, play the game and you will see
that your game is not lagging anymore
Disclaimer: Found this fix on https://www.youtube.com/watch?v=mWwGvlVWnNc
Here in 2022 to say this still works, playing over mobile, gtx 1050. Must be something to do with encoding while streaming using the GPU
or any stronger gpu will be able to encode with very little gpu performance difference