Game is way too picky when it comes to a single packet loss

[Claviusnex]

That doesn't just mean there's nothing that needs to get fixed when it does happen.

I didn't say that there isn't anything to fix but unless you know what the underlying events are you don't have any way to know where to look to resolve the problem. Traceroute and ping are fine for basic network diagnosis but they do not necessarily take the same routes that the application will. They also don't use the TCP stack but instead use ICMP or UDP neither of which are reliable transport so where they show packet loss a TCP based application might have recovered on a retransmission. Again the only thing that will show what networking protocols are being used and what is really going between the game server and client is a sniffer. From this you can then define the problem and whose responsibility it is to resolve.

I was also trying to explain that physical proximity does not guarantee a faster route. A small capacity connection to a local node might have a faster ping time but actually be slower with real data than a larger pipe to a remote node. This by itself is not good or bad. Most likely is is based on ISP contract costs with the backbone provider so even if it could be improved you would have to build a business case to justify the increased costs to the SIP. Of course it could be something stupid such as "We've always done it this way".