Lag

In online gaming, lag is a noticeable delay between the action of players and the reaction of the server in a video game.

The tolerance for lag depends heavily on the type of game. For instance, a strategy game or a turn-based game with a low pace may have a high threshold or even be mostly unaffected by high delays, whereas a twitch gameplay game such as a first-person shooter with a considerably higher pace may require significantly lower delay to be able to provide satisfying gameplay. However, the specific characteristics of the game matter. For example, fast chess is a turn-based game that is fast action and may not tolerate high lag. Also, some twitch games can be designed such that only events that don't impact the outcome of the game introduce lag, allowing for fast local response most of the time.

While a single-player game maintains the main game state on the local machine, an online game requires it to be maintained on a central server in order to avoid inconsistencies between individual clients. As such, the client has no direct control over the central game state and may only send change requests to the server, and can only update the local game state by receiving updates from the server. This need to communicate causes a delay between the clients and the server, and is the fundamental cause behind lag. While there may be numerous underlying reasons for why a player experiences lag, they can be summarized as insufficient hardware in either the client or the server, or a poor connection between the client and server.

Hardware related issues cause lag due to the fundamental structure of the game architecture. Generally, games consist of a looped sequence of states, or "frames". During each frame, the game accepts user input and performs necessary calculations (AI, graphics etc.). When all processing is finished, the game will update the game state and produce an output, such as a new image on the screen and/or a packet to be sent to the server. The frequency at which frames are generated is often referred to as the frame rate. As the central game state is located on the server, the updated information must be sent from the client to the server in order to take effect. In addition, the client must receive the necessary information from the server in order to fully update the state. Generating packets to send to the server and processing the received packets can only be done as often as the client is able to update its local state. Although packets could theoretically be generated and sent faster than this, it would only result in sending redundant data if the game state cannot be updated between each packet. A low frame rate would therefore make the game less responsive to updates and may force it to skip outdated data.

...
Wikipedia