What mainly affects packet loss / choke?

I have pretty lacking internet d/u speeds (specifically 8mb (advertised) down and 0.5 up), and my ISP doesn't really like reliability that much, but even if I do have 120ms (which is mediocre for me) I still see a lot of signs of packet loss and choke and games such as Overwatch and TF2.
I find that sometimes, even if I have 80ms to a server (which is considered excellent for me), I still find it unplayable if a lot of packet loss is present (i.e. jittery player models, awkward movement, etc.), but If I have around 120ms with minimal packet loss, it becomes much more clear, especially in competitive games. I have about 6 static computers on my network (3 of which are connected through powerline) and 2 of them are used for streaming.

My question is, will a better router solution (instead of my crappy Netis ISP provided one) decrease / help with packet loss and/or choke? If so can you recommend me one? I've been looking at the Netgear 2000 and the Netgear 3500L, they both seem like adequate solutions, but I want to make sure first.
If a change of hardware is unlikely to help with my issue, can someone recommend some other solution (apart from the obvious ones)?

Thanks for your reading/answering time in advance! (Also, sorry if i'm not the brightest.)

Before going that route I think you should make sure the cabling is done well. I had huge issues with my connection too and turned out to be that some cables were bad and my ISP changed them without charging me a single penny. If you can get the same kind of assistence go for it first.
Than, if you're using an Intel NIC like the I218-V, you can go into the driver settings and use the option to check the quality of transmission and the cable between your modem/router and the PC.
If that's not the problem too ask your ISP to check the SNR ratio and adjust your internet speed accordingly to avoid the packet loos (might result in slower internet speed).

Well if I were to re-cable, i'd rather just lend a Cat5e box and do it myself. I'm pretty sure the people who answer the phone/sit at the register don't even know what SNRr is, and if they redirect me to a mechanic I have to hold for like 30 minutes, but i'll think of something. But I still want to ask whether a better router will decrease choke/packet loss, just as reference.

What are the specs on the modem that you're using? Also for those speeds basically any modem, even the more basic home router, can handle it.

It's a Netis WF2411I, not a very reliable one, constantly has weird kernel issues. Maybe it's not meant for very frequent packet transmission?

Well if you're having constant kernel issues with it might be the problem. If you stream a 1080p 60FPS video from Youtube you're having the same issues you're having during gaming?

Essentially yeah, but much less.

So I guess getting a newer modem/router, even a 30$ one, will make things better for sure. But you should make sure that your ISP allows 3rd party modems to be configured on their network. Maybe you're even going to get better speeds because the newer modem can handle the SNR better.

Alright, i'll look into it. Thanks a bunch for the recommendations!

You're welcome (:

if your concern is with packet loss, first check your local network

ping -n 100 'your default gateway address' and measure for packet loss and the average time of the packets. Ensure that there is no packet loss and that average ping time is less than <50 ms over wifi. If you're hardwired it should be 1 ms flat or less.

then send ping to websites like you tube and see how much time this takes and if any loss. If loss, then do a ping trace tracert 'ipaddress' to see where you're hopping around. If you spend a lot of time and ms in your carriers network; then the issue may be caused by them.

Lastly, always test your cables and reterminate any loose or any cables you feel are not up to snuff.

There are too many variables to compile a simple answer to the question. Start with the poster aboves idea. If the latency is outside your network, call your ISP. If inside, star doing process of elimination.

Connect straight to the router. Still have latency? Connect straight to the switch. Still latency? Work your way back to where it was plugged in initially to see where the chokepoint is at.