The majority of information that is being sent and received over the internet is info about the position of the players, which is not very much information relatively speaking. All the other stuff in the game that you see is created using the assets that are stored in your computer locally (either the game disc, cartridge, or hard drive). Also, sometimes the game is optimized to run well online and may, at times, sacrifice accuracy for the sake of running smoothly. So it’s not lagging but the game outcome isn’t as accurate as it would have been if you were doing couch multi player.
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