Higher latency can result in a lack of accuracy between clients, for exemple, if you play an online shooter game, go behind cover but still die from being shot at, it's because your position is not immediatly transfered to other players, so you're still a few feets behind from your actual position while moving.

Excessive latency creates bottlenecks that prevent data from filling the network pipe, thus decreasing effective bandwidth. The impact of latency on network bandwidth can be temporary (lasting a few seconds) or persistent (constant) depending on the source of the delays.Think of latency in terms of a road. The longer the road, the longer it Nvidia GeForce Now’s Competitive mode cuts input latency Feb 26, 2020 Low Latency Matters in Online Gaming Mar 07, 2017 Xbox One Wired vs Wireless Controller Latency- Compare

If you want to play games, especially first person shooters or driving games, then you should aim for a latency of less than 50ms and preferably less than 30ms. What Affects Latency? There are a number of things that affect latency: Connection Type - The type of connection you use will affect your latency.

Latency in games is the reaction time from the moment a player interacts in a game till an in-game mechanic like action, sound, or graphic command gets processed. If the latency is high, such interaction, action, sound, or graphic commands can be delayed to a noticeable degree.

7 Ways to Reduce Latency in Online Gaming | Engadget

Excessive latency creates bottlenecks that prevent data from filling the network pipe, thus decreasing effective bandwidth. The impact of latency on network bandwidth can be temporary (lasting a few seconds) or persistent (constant) depending on the source of the delays.Think of latency in terms of a road. The longer the road, the longer it Nvidia GeForce Now’s Competitive mode cuts input latency Feb 26, 2020 Low Latency Matters in Online Gaming Mar 07, 2017 Xbox One Wired vs Wireless Controller Latency- Compare