Latency

I've been using Netlimiter to monitor how much bandwidth online games actually use and the answer was very surprising.
The bandwidth never even got close to 0.75 Mbps but this got me thinking, not many people have a connection slower than that so why do online games lag so much?

Because latency can be very variable, and latency is more of an issue than bandwidth for online gaming.

You can have a very highly variable latency, but still have great downloads and uploads.

And of course someone else could be downloading on the line at the same time - and if bandwidth is saturated then latency will shoot up.