In my honest opinion, they should keep skill-based matchmaking to a point, perse you can't be matched with someone 2 time zones away from you. That way you won't play against noobs one game and then get -blam!-ed up the ass the next, but you'll still maintain a fairly decent connection.
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Yea I agree. They definitely need to fix how far away they connect to combat the lag and it would be nice to have a classic game modes be no SSBM that way you have the option to play something a lil relaxed if you need a break