It's based on country. That may be a great system in Europe where each country is rather small, but in North America it's an unacceptable means of matchmaking. I've been, since the release of this game, matched with people in Quebec (Over 5,000 miles away), this continually constrains my latency to 2 bars. It's unacceptable.
I must also iterate that this decision is based on principle, not monetary reasons.
So congratulations Crytek, you destroyed my expectations of this game by either being ignorant, lazy, or releasing the game prematurely without testing the online properly. I'm assuming the third is very applicable seeing the Nano catalyst bug was very obvious yet reached released.
Therefore, thanks to your matchmaking system, I must bring principle into the matter, you refuse to fix and tune a central part of the online experience, therefore I refuse to utilize my dollar vote in buying your DLC. I very rarely criticize games on their forums nor forgo purchasing DLC; my expectations of Crysis 2 were met in relation to content, and yet you blew it on a technical level in regards to the online experience. Online gameplay is where the replay value comes in, therefore this game now has very little replay value.
I'll finish the SP, and await reviews and player feedback before buying Crysis 3.