Fighting games are never perfect online; that's a fact. Most of us are quick to complain about netcode, which should be done. The problem is that most Japanese developers use netcode that works very well in Japan which is a tiny country with bad ass internet. Outside of Japan, the netcode is not good enough to overcome the problems of great distances between players and the wide range of quality in internet connections. This guide will help you maximize your connection and minimize the frustration of poor online play.
I was not sure how much any of this would help when I first got into it. Still, I'm a tinkerer and have found that the results were pretty damned amazing. I've been in King of Fighters XII rooms with players on either end of the country and have had a good experience.
Baseline test Use the PS3 Internet Connection test to determine your connection speed. As most US homes use DSL, our speeds vary quite a lot. I once tested my connection twice back to back and the speed was 24 down/16 up and then 12 down/6 up a few seconds later. It helps to test so that you have some idea how fast your connection works. This is optional.
Step 1 Use a wired connection. As the PS3 has built-in wireless, most players resist this step but it's necessary. No matter how close your router is to the system and no matter how fast the router is, information is lost. Ethernet is the most stable connection between your system and the router.
Step 2 Either forward the PS3 ports or put the system in the DMZ. This is the most important step and is slightly complicated. On your computer, log into your router. You'll need to figure out an IP address that will not conflict with other devices. Most of my devices were on the low end so I used an address that ends in .30, just in case.
On your PS3, go into Settings > Internet Connection Settings. Choose Custom > Wired Connection > Auto Detect > Manual > then enter your IP address, Subnet Mask, Default Router, Primary DNS and Secondary DNS > MTU Automatic > Proxy Server Do Not Use > UPnP Enable > Review your changes and save. (Each > denotes a new page.)
Once you've completed that, go back to your computer and forward these ports:
TCP
80
443
5223
UDP
3478
3479
3658 (voice chat)
On my router interface, port forwarding is under Virtual Servers. After clicking that link, you type in a description, the ports involved and the affected IP. You can also place your PS3 in the DMZ by typing in the IP under the DMZ section of your router interface. Each router is different so you may need to consult documentation.
Step 3 This is very, very important. When playing online, shut down other internet traffic. This means absolutely no torrents, videos, downloads, surfing or anything on any computer in the house. Reduce the noise! I was once playing a very laggy match and realized I had my browser open and, when I closed it, the game was playable. This can be hard for those of us in houses with other people but at least try. I'm lucky that my wife understands and enjoys watching me play fighters.
Step 4 - Optional Retest your connection via the PS3 tool. See if the results are the same.
Step 5 - Optional I've read a lot of praise of OpenDNS for video game consoles. I use it on my laptop and it's damned fast. I didn't have much luck with it on my PS3; it does, however, work wonderfully with my Wii and TvC. Google it, if you're up for it, and think your ISP's DNS are shit.
Source:
http://www.shoryuken.com/showthread.php?t=214258 Remember that online play is a 2 way street and that the connection is only as good as the weakest link. That's one of the reasons I'm trying to spread the word. When I play KoFXII online, if I avoid red connections I have had very good experiences. Super SSFIV's online is really good though I have seen some serious lag. If everyone does everything they can to improve their own connection, games will run smoother for all.
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