[quote][b]UPDATE (02/18/2016): Matchmaking tuning has been revised to prioritize finding people who are close to your locality in the interest of further reducing lag.[/b][/quote]
Either nobody plays this game anymore, or whatever you are doing does not work. I live in Finland (which is in Northern Europe), and i'm still getting consistently matched with North American, South European, and Middle Eastern players.
The connection is always poor when that happens, that happens all the time, and when one or more of these players who are not in my region are lagging badly the damage ref doesn't seem to do anything.
I'm realistic and don't expect consistent local matchmaking (and by local i mean Nordic lobbies, not just other Finns), if the lobbies consisted of players from Northern, Western and Easter Europe that would be an improvement.
Just give us a matchmaking system that is truly based on connection and region, and stop trying to do SBMM.
English
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The REAL problem is the dwindling player base, and no amount of network tweaks can fix that. The other day I got into a daily match of salvage. EVERYONE was yellow or red. They couldn't find any decent connections for the daily playlist??? Games like CoD and BF can offer great multiplayer largely because they have HUGE active player bases. Try getting a multiplayer game of Kane&Lynch:Dead Men. I tried a couple years back -- there's literally no one playing the game anymore. Tyhjästä on paha nyhjästä, as we Finns say. (You can't get something out of nothing) At the end of the day, it comes down to acceptable wait time in the lobby. How long is too long to wait? Is no game better than a bad game? Waiting too long leads to players quitting the lobby, which makes further matchmaking even harder, so they err on the side of giving a game, ANY game rather than making people wait too long. There is also the technical issue that in the P2P network model, player connections to the Bungie server making the matchups does not necessarily reflect their connections [i]to each other[/i], which is the important part for the gameplay. I honestly don't know how they handle that (I can think of ways, but all the good ones are substantially harder than just sorting a list on the matching server).
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Salvage and any other playlist that still uses the older matchmaking setttings are bound to have even more lag issues, they have way too much emphasis on skill (stats) on those playlists. Control and other playlists that have more emphasis on connection play a bit better, but not good enough as the matchmaking is not even remotely regional. Player population might be declining (i don't think the game dead) but that should be even more of a reason to go with fully connection based matchmaking to minimize potential connection problems for all regions. I understand people are not very patient with waiting times, i personally wouldn't mind longer waiting times if the connection would also be better, and at the moment i don't have to wait too long to find a lobby. I think it takes longer to fill a lobby in the playlists that still use the previous settings.
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I know, I just figured that with me being solidly in the top 50% of players it wouldn't make much difference -- unless the matching is implemented by a total moron and takes no account of connection quality at all. FWIW, during last IB I saw 1-4 red bars in EVERY game. That was supposed to be the poster child for the new connection matching. Ironically, for me personally January was quite fine and every tweak they've made has both increased bad connections and lopsided pointless matches. Good thing I don't really care for PvP so I won't lose any sleep over quitting Crucible altogether.