Re a limited pipe, I did consider that for several minutes before posting. Whilst it is almost certainly the case I'm not sure rate capping an individual IP connection is the result of straight thinking.
What worries me is that they may be doing it in a noddy fashion, with a connection limit of perhaps 12Mbps at all times, rather than a demand-based variable cap. A demand-based one I couldn't really argue against except to feel they should increase the pipe capacity.
By capping to that degree they hugely prolong the time for the download. As they no doubt have multiple downloaders beginning and ending their downloads at any given time, this results in a vastly increased number of people actually downloading over a period. They therefore considerably inflate the capacity requested at any given time.
If they were able to allow fast downloaders to complete quickly, their requirement is removed from the system. So at any given time there would be fewer downloaders and the bandwidth available for each would be higher.
I don't do gaming, but gather many game updates are huge. They don't limit to 1.3MBps. I do get Microsoft updates, at high speed.
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