Why Do IPX Games Work but TCP/IP Games Fail?

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IPX is much better for gaming because of its inherently low overhead. With all of that multimedia traffic, a 25% TCP/IP packet loss with an Ethernet hub is normal, and you simply have a network performance problem. 
 
To improve performance you should replace your hub with a switch: hubs broadcast and repeat what they hear, whereas switches provide dedicated bandwidth with less of an opportunity for collisions to take place due to their point-to-point nature.