Well lag might be the wrong word, there's a 50% chance that during combat my character will still preform attacks and I can move around but the target does nothing and then the game catches up a little bit later. My connection seems fine as I can still do dungeons on my laptop (about all it can do in the game) and other games run well the the console. I thought that the ps3 version in general had problems because of low memory space and the one i'm using is around 30 gigs I think.