"While it's true you can battle over Wi-Fi, your connection environment and the distance between players can cause great changes in speed. That fact probably makes you a little uneasy. So, we conducted an online battle between Nintendo's headquarters in Kyoto and the development team in Tokyo. The distance between Kyoto and Tokyo...is nearly the same distance between Los Angeles and Las Vegas. Here's the video of that match." http://www.smashbros.com/en_us/ Wi-fi look like it really smooth so now we don't have to worry about to much lag... Enjoy!!!