I've been trying to figure this out for a while. Since buying a quest 3 I've tried using the quest link so I can play vr games off of steam. I used air link originally and it had a good amount of latency that ruined most games, as well as screen tearing and freezing. To fix this I decided to get a link cable, and it didn't make it any better. Reminder that the main problem is games off of steam. When I watch my pc to see the vr gameplay, it runs smooth like butter, but what I'm seeing in the headset is nauseating. I'm hoping that I can find a way to fix this whether it be a graphical issue or something wrong with steam vr. I have 5G internet connection and the link cable is a USB 3 just incase anyone is wondering.
If the games are using SteamVR (not all Steam games use SteamVR, they can use native Oculus runtime too), check the resolution in SteamVR Settings / General / Render Resolution. In the past I've seen SteamVR default to massively upscaled resolution, changing it to Custom and setting a reasonable resolution fixed it.
You might want to check out SteamLink too. It's an alternative to Airlink made by Valve (and its free). Still fairly new, but it may give better results. It has no USB cable support though, but since you said you were getting the same performance with WIFI and USB it might be worth a go.
Running a 7800x3d, 32GB 6000MT, 2Tb NVME, RTX 4070.
Have Gigabit lan, sitting literally 3m away from the router, while the router is a 250$ product with Tri-band setup, having a solo 5Ghz band ONLY for my Quest 3, and my PC is wired with the router via a 2.5Gb port on it.
Steam Link is atrocious while EVERYTHING else such as Oculus Link or being wired to the PC with my Q3 feels great. Don't know what I expected from a dog**bleep** company such as Valve that hires "developers" only based on their pronouns.
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