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Note Latency and Bandwiddth are 2 entirely different things
Bandwidth - How big the pipe is
Latency - How long it takes for something from point A to reach point B
Think of a garden hose where
Bandwidth - how much water comes out the other end
Latency - how long it takes from when you turn on the faucet to when the water comes out the other end
If the hose is just regular water, the bandwidth might not be great (size of the hose) but the latency is good (when i turn on the faucet water comes out the other end fast)
But say that faucet had molasses coming out. Sure I could have a giant 1 ft wide hose (lots of bandwidth) but the latency is gonna suck because the molasses takes a LONG time to travel from the faucet to the end of the hose (terrible latency)
Satellite communcations are a good example of this. Sure you can have a 200mbps satellite connection, but the latency could be 5 seconds.
In regular networking you would be right but for game streaming the bandwidth is mostly there as a quality parameter. The higher bandwidth stream, the higher picture quality but since we're doing it all in real time that extra data adds on encode/decode time ie increasing latency.
Your example is incomplete because what appears to be the problem is that my faucet isn't being turned on all the way. It's only 10% on.
I don't know why tech support didn't tell me this when I asked them about it.