The pressing issues of packet loss and network latency in online gaming are major concerns for players seeking seamless gameplay experiences. The prevalence of these issues, exacerbated by data center limitations and geographical disparities, underscores the need for performance-enhanced cloud architecture. Our study investigates the potential of cloud computing, specifically Amazon Web Services (AWS) free tier services, to mitigate these challenges and improve online gaming performance. Therefore, we intended to setting up a cloud-based gaming architecture on AWS, leveraging the free tier services, hence to create an environment that simulates real-world online gaming scenarios. Our investigation particularly collects data on key performance metrics such as packet loss and network latency by comparing the gameplay experience on a traditional architecture with the cloud-based gaming system. This comparative analysis aims to uncover the extent to which cloud infrastructure can enhance gaming experiences by overcoming the inherent limitations of traditional online gaming setups. Our study revealed that a packet loss has been reduced using the cloud-based architecture when compared to traditional gaming setups. In addition to that, the performance of network latency in cloud-based architecture is significant when compared the performance achieved in traditional architecture. Such enhancements hold paramount importance in the realm of competitive online gaming, where these performance metrics directly impact gameplay fairness and player satisfaction. Further, our findings proclaim that the cloud-based architecture can provide more stable and responsive gaming environment when the game developers and cloud architects are involved in cloud-based service configurations.