I have tried Raspberry Pi to stream emulator games, but I had issues with bluetooth controller (latency problems), so I thought about pc game streaming to raspberry pi and bluetooth controller will paired with PC. Its all in close range.

Raspbi is connected to TV.

Thats my last attempt to make it all kinda wireless. If it fails, I will have to connect my PC to TV...

I tried helping a friend with this a few weeks ago, and we struggled with getting it running on raspbian. I think it's no longer supported? Or maybe out of date.

I don't know if you're avoiding this solution, but we we ended up just installing Steam Link onto the device and it seems to work fine that way

the older pis simply can’t play 1080p high bitrate streams smoothly

Can you be more specific about where the line is? Even approximately would be helpful.

I'd guess anything older than an RPI 4 you're going to struggle with 1080 at 60 fps. Worth a shot though. When the stream box is the bottleneck you can actually render it higher on the PC and steam at the lower resolution and it can look better than you would expect.