In general, games in Windows take full screen to offer immersive experience for the users. When games are displayed in full screen, Windows optimizes the PC to make the game look and run better. However, in the case of Windowed games and Borderless-Windowed games, Windows OS will not apply any optimization and considers it as just another application.
What are Windowed games and Borderless-Windowed games:
Instead of taking over your entire display, a Windowed game is put into a Window that can be moved around and resized depending on what you want. Borderless-Windowed game is similar to windowed gaming as it runs the game in a window except the window is mostly at a full screen size and without a border.
Yesterday, Microsoft announced a new feature called Optimizations for windowed games in Windows 11. This new feature can significantly improve latency and enable gaming features like Auto HDR and Variable Refresh Rate (VRR). This feature is now available in Windows 11 Dev Channel Insider build  22545 or above.
You can enable this feature by following the below procedure:
- Go to Settings Â
- Go to System -> Display -> GraphicsÂ
- Then go to Default graphics settings   Â
- Scroll down to Optimizations for windowed games and turn the setting On.Â
- Restart your gameÂ
If you do not want these optimizations for a specific game or app, you can follow the below procedure:
- Go to Settings
- Go to System -> Display -> Graphics
- Select an application and click Options
- Select which features you would like to opt-out of
- Check the box for Don’t use Optimizations for windowed games
- Check the box for Don’t use Auto HDR
- Check the option for GPU preference (for devices with more than 1 GPU)
- Save the selection
- Restart your game