This starts with incorrect debouncing in input devices (which can cause 10+ ms delay on its own even in dedicated "gaming" hardware!), slow/inefficent poll rates, wrong input handling in games (many still seem to receive input on the "main" thread ticking along at the frame rate, which causes huge amounts of input lag at lower framerates and also clamps inputs to frametimes, which causes significant position errors), incorrect V-Sync implementation (like the broken "triple buffering" in D3D9-11 games, this should be a thing of the past nowadays), graphics drivers favoring throughput over latency as they are almost exclusively benchmarked on average fps (used to be that they could buffer up to 9 frames, or ~150 ms) etc.
In this case it's more about the rendering pipeline input lag so the USB polling delay and the monitor output delay aren't counted, the swapchain delay to prevent tearing or trading latency/FPS are though and then you have to add in your actual game still.
Do you know how many chips are in a cable modem/router combo?
USB can beat PS/2 for latency without issue.
> Transaction latency
> For low speed (1.5 Mbit/s) and full speed (12 Mbit/s) devices the shortest time for a transaction in one direction is 1 ms.[6] High speed (480 Mbit/s) uses transactions within each micro frame (125 µs)[7] where using 1-byte interrupt packet results in a minimal response time of 940 ns. 4-byte interrupt packet results in 984 ns.