Skill Based Matchmaking would work fine if the studio ever put any effort into coding its online hit registration. They've been notoriously bad even with low ping ever since Marathon.
The least they could do is give the player an option to search by connection strength.
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I remember when my friend made a ping mod on halo to constantly display your ping while playing. It was pretty small and was called PingLo. (Pretty private stuff) So basically I tried it out and basically my ping was awful when I connected to servers. Sure they weren't bungie's servers (it was GameSpy) but oh well. Proves a lot here. The ping went into the 200s at one point
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On Halo CE you could check your ping (and others) on the scoreboard, and even as low as 50 there was Lead in online games. I've once had the pleasure of being in a server where I had 5,000 (thanks, Mexico). In 3 and Reach, you pretty much won the game if you were host, no exceptions. Players were punished even if they had good connections. Halo 2 was the worst though, everybody exploited the online leveling system to the point where every single level 45-50 was almost guaranteed to have used a Lag switch to get there. I can't believe Destiny had this problem for a while when other companies have set preventative measures up for years.