>>389160668
The streamed game is basically projected onto a static sphere around you, do the game can freeze completely and rotation will still be smooth, though you'll eventually rotate far enough to see unrendered areas.

A good test is to hold one hand are out in front of you, then rotate your whole body.

The background will always rotate smoothly, but because the controller needs to translate to remain in the same relative position, it will stutter or lag if your setup is messed up.