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The other ♥♥♥♥... ehhh doubt it. Game is ♥♥♥♥♥♥.
So yeah, mostly the problem seems to be microsoft again mostly.
The only way to reduce latency is if all the players in your party are on the same internet service provider. Reason being is that if you are playing from different providers, the peering between them may vary. By playing on the same provider, you keep the connection local. Don't even think about playing between two regions.
If its ENTIRELY P2P, Maybe its because Halo 3 coop doesnt have that issue then? I ll try CE again with her to be sure.