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Graal's client is probably not built on the same multiplayer technology that the heavyweights of MMOs are, that and Toonslab/Eurozone are probably not investing more into the appropriate realm/server tech. You have to realize that every stretch of the planet is playing on one real-world location. League of Legends recently tried alleviating the issue of hosting one server for North America by moving their servers to Chicago, and its a tradeoff for people who used to live near the Arizona-based servers to give lesser ping to people on the eastern coast. "Server lag" is a much larger issue.
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The server's location is fine. The main issue, is the amount of people that get on the game, and that can't be helped. It's good that graal has a lot of players.
The devs say "It's because of the crowds in graal city."
Plus, Facebook is not optimized/is outdated to run graal without lag at this point.
iPad runs fine for everything on Graal. I can be zoomed out, and have more than 100 players shown at the same time, and still be able to have no frame drops. The main problem is that Graal's server is for all of the iServers together, when there are too many players on the server crashes, anything involving a sword, a net, or farming takes longer/isn't as enjoyable.
If Graal's current server supports up to 16,000 players, then there should be a separate server just for iClassic, and maybe one for iEra as well.
It's sad, because every good idea always gets shot down or declined, because of the lag it would apparently cause.