Webcam is Lagging

A follow-up question. Camera works now. However, the picture laggs a bit, my own and the one of the other. The pictures on the other notebook (of the counterpart) are smooth (which has far worse specs). So there is no issue on the other side with my picture being laggy. However, seeing oneself and the other person smoothly on the own notebook is important for videoconferencing. The lagging is not “that” bad but still not smooth and annoying for longer videochatting, e.g. job interview.

I tried upping the Vcores and memory but that did not help. I also tried directly attaching the usb controller, that did not help ether.

What is the reason for the lagging and is this normal? Can it be fixed? (Is it the lack of hardware encoding/decoding mentioned by @airelemental)

My lag is maximum about half a second, but it is acceptable for conversations.
I also increased RAM to 1GB and VCPUs to 4 in sys-usb to ensure the camera remains connected.