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Shield is Nvidias android gaming platform. Xbox controllers are for windows or Xbox. Shield Controllers are for android and windows.
WiFi definitely adds lag compared too Ethernet and Steam Link App simply performs better when nobody else has WiFi devices anywhere near your network/connection.
You could try using Steam Link App with controller using USB cable to compare how using Bluetooth for controller affects your WiFi for Steam Link Apps In Home Streaming stream, if you haven't already.
- BT is working on 2.45GHz I think. So there should not be any interference with the WiFi?
- Thank you for the advice, I'll try the cable option as soon as I can.
But fortunately I might have found a fix for the problem. It seems to be a problem of the device itself(probably some more tablets), as it works with my smartphone flawlessly. I did some research and tried to turn off the GPS on the Mediapad M3. It seems like the GPS function affects the WiFi somehow. BUT only when WiFi and BT are communicating simultaneously. WTF, I know, but it seems to work. I will test it further to be sure it's not luck again.