I've got about 2700kbit/s of downstream (after overheads) to go around 36 clients. :-[ Let's not even consider upstream.
Gaming traffic is actually quite minimal (<30Kbit/s per client; more if the client is a game host)
It's a matter of managing the other services (web surfing, streaming youtube/ tagged videos etc) so that they can't saturate the line. Line saturation is a big culprit in making latencies skyrocket.
Since most of the services being capped either use TCP (able to re-transmit, responds to ECN) or have buffers (streaming videos), dropping the packets on the downstream to force the source to throttle back actually works remarkably well.
Comparatively, most online games use UDP (TCP is used only for authentication) and don't have netcode optimized for lag compensation and interpolation (like Halflife engine), dropping/ limiting the packet stream is out of the question.
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