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So, in his last stream, Cord finally admitted that the lag in LOTRO is a game engine thing. Actually, he said it not really lag, but it is an issue with a 3rd party physics engine that they use.

If I remember correctly, the lag issues started in Update 6, way back in 2012. I believe it started when they "fixed" issues related to The Pits of Iron - There were many places where you'd fall through the ramps/bridges/stairs. They called it a physics problem, and it was at this time, I started to notice a lot more objects and NPCs were slightly sunk into the ground, and that I would be often be dismounted by the mere suggestion of water.

They were supposed to issue a fix this week, but the solution caused additional issues.

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