Airport Express slow xbox communication

Is there any reason why I would experience slow connection speed with my xbox to my Airport Express.
All Macs, iPhones & iPads at home work fine as ever.

First, wireless is always going to be slower than Ethernet due to loss in the conversion process to wireless. Usually this is around 15-20% or so.
The further away that you move from the wireless router, or if you have any obstructions like walls in the signal path, the more the bandwidth will drop away. No way to escape that.
-Could it be that I'm getting interference from both wireless networks active and broadcasting from only about 3 feet apart?
Very likely, in my experience...along with cordless phones, BlueTooth devices, etc.
-Are the claims of actual WiFi speeds of 802.11 N just B.S.?
In what regard? The speed on your "private" network will always be much higher than the speed of your Internet connection.
Try this test:
Locate your MacBook relatively close to the AirPort Express
Hold down the option key while you click on the fan shaped AirPort icon at the top of the screen
Look for the Transmit Rate
What number do you see?

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