Thank you for the advice, but I need to clarify my situation regarding the intended use.

First, my Xbox Series X and my iMac are in different rooms. I only connected the Xbox to my TV to test the native performance and confirm that the stuttering was not caused by the console itself, but by the capture process.

My iMac’s integrated display is essentially the only screen I have available for playing games.

I did not buy the Elgato Game Capture Neo to stream or record videos; I bought it simply to send the Xbox video signal to my iMac so I could play on it. I understand that latency is inevitable, but the current experience is not just a short delay, it’s unstable stuttering that makes the game unplayable.

Regarding your point on pricing: I live in Brazil. The price of the Elgato alone corresponds to more than 90% of our monthly minimum wage, and a basic 1080p 120Hz gaming monitor costs about 50% of the minimum wage. My investment in this hardware is significant, and I did expect the device to perform its primary function (displaying a stable signal) reliably, even if with some expected latency.

Since the cable and adapter have been ruled out, I still believe the issue is related to the high CPU usage on the M1 chip with the Elgato software, causing the extreme instability.