Game streaming splits into two distinct approaches: streaming from your own gaming PC to another screen in your home (local), or streaming from a cloud data center to any device anywhere (cloud). They solve different problems, have different tradeoffs, and the best setup for you depends entirely on what hardware you have and where you want to play. Here is how both work in 2026.
What changed in 2026
- Sunshine (open-source Moonlight server) matured to v2.x with a polished web UI, broad GPU support (NVIDIA, AMD, Intel Arc), and HDR passthrough.
- GeForce NOW added RTX 4080-class cloud instances, making 4K/DLSS streaming available in the premium tier (~$20/month).
- Xbox Cloud Gaming is included with Game Pass Ultimate (~$15/month) and now covers most major Xbox/PC Game Pass titles at 1080p/60 fps.
- Steam Link remains a dead-simple option for Steam libraries on the local network.
- WiFi 7 in homes reduced the "wired-only" requirement for local streaming — 2.4 Gbps WiFi 7 handles 4K/120 fps streams with headroom.
Local vs cloud: which is right for you?
| Factor |
Local (Sunshine/Moonlight) |
Cloud (GFN, Xbox Cloud) |
| Hardware needed |
Gaming PC (host) |
None |
| Monthly cost |
Free |
~$10–20/month |
| Latency |
5–20 ms on LAN |
20–50 ms added |
| Quality ceiling |
4K/120 fps |
4K/60 fps (premium tier) |
| Play away from home |
Yes (via internet) |
Yes |
| Game library |
Everything you own |
Dependent on service catalog |
Setting up local streaming: Sunshine + Moonlight
On the host PC:
- Download and install Sunshine from github.com/LizardByte/Sunshine (NVIDIA users can use official NVIDIA GameStream, but Sunshine is more capable and works on AMD/Intel too).
- Open the web UI at
https://localhost:47990.
- Create credentials, then add your games or applications.
- Sunshine auto-detects your GPU encoder (NVENC, AMF, or Quick Sync). Under Settings → Encoder, select GPU hardware encoding.
On the client device:
- Download Moonlight (available for Android, iOS, Windows, macOS, Linux, Apple TV, Fire TV, Raspberry Pi).
- Launch Moonlight — it auto-discovers the host on the local network.
- Enter the 4-digit PIN shown on the client into the Sunshine web UI to pair.
- Select a resolution and framerate (start with 1080p/60, work up from there).
Recommended stream settings:
| Setting |
Local 1080p |
Local 4K |
Remote 1080p |
| Bitrate |
20–30 Mbps |
80–150 Mbps |
15–25 Mbps |
| FPS |
60 or 120 |
60 or 120 |
60 |
| Codec |
H.265/HEVC |
H.265 or AV1 |
H.265 |
Setting up cloud gaming
GeForce NOW:
- Sign up at geforcenow.com. Free tier, Priority (
$10/month), or Ultimate ($20/month).
- Download the app for Windows, Mac, Android, iOS, or Shield TV.
- Connect your Steam/Epic/GOG/Xbox account to sync your library.
- Launch a game — it streams from NVIDIA's data centers.
Xbox Cloud Gaming:
- Active Game Pass Ultimate subscription required.
- Play via xbox.com in any browser, the Xbox app on Windows, or the Xbox app on Android/iOS.
- No download or install needed.
Network requirements
| Use case |
Minimum bandwidth |
Recommended |
| Local 1080p/60 |
20 Mbps LAN |
Gigabit LAN |
| Local 4K/60 |
80 Mbps LAN |
Gigabit LAN |
| Cloud 1080p/60 |
15 Mbps down |
35+ Mbps |
| Cloud 4K/60 |
40 Mbps down |
80+ Mbps |
Common mistakes
Streaming over 2.4 GHz WiFi. The bandwidth is insufficient for 4K and the interference causes dropped frames. Use 5 GHz or 6 GHz at minimum, or wire both ends.
Using CPU encoding instead of GPU. Software encoding maxes the CPU and causes stutter. Always select the hardware encoder in Sunshine's settings.
Setting bitrate too low for the chosen resolution. 1080p at 5 Mbps looks blurry in motion. 20 Mbps is the floor for clean 1080p/60.
Not testing latency before buying a streaming device. Run Moonlight on a phone or laptop first before buying a dedicated device like a Shield TV.
What to skip
- Steam Link hardware box — it is discontinued. Use the free Moonlight app on a Fire Stick, Roku, or any Android TV instead.
- Streaming 4K over the internet unless your upload speed is 50+ Mbps — compression makes it look worse than local 1080p.
- Cloud gaming for competitive FPS — the added latency (even 20 ms) is measurable in fast-twitch games. Local streaming or native play wins here.
FAQ
Does Moonlight/Sunshine work outside the home?
Yes. Expose the host via port-forwarding (ports 47984, 47989, 48010 TCP; 47998–48000 UDP) or more elegantly, set up Tailscale on both host and client — no port-forwarding needed.
What GPU do I need on the host?
NVIDIA GTX 900-series or newer for NVENC, AMD RX 400-series or newer for AMF, or any Intel 12th gen+ CPU for Quick Sync. Nearly any modern gaming GPU qualifies.
Is there input lag with cloud gaming?
Yes — 20–50 ms of server-induced latency on top of your network latency. Fine for single-player games; noticeable in competitive multiplayer.
Can I stream to a TV without a PC attached?
Yes — install Moonlight on an Android TV device (Fire Stick, NVIDIA Shield, or any Android TV box). The TV only needs the streaming client; the host PC is anywhere in your home.
Where to go next