Most games use a dedicated server along with software installed on it.This program collects data from players and sends it to other players connected on the game network. Of course, the use of such software is much more efficient than a P2P software which were once used, but it requires a dedicated server to host the server software.

Network bandwidth, in particularly upstream (your provider’s) bandwidth, is most of the time one of the biggest limits in hosting game servers.Home/Office broadband Internet connections normally do not provide the necessary upstream bandwidth to host dedicated game servers with more than 5-10 clients. In the past, only that option was available.Typically a player would buy the game and host the server, and run the client as well, on their home computer. Even if the bandwidth provided by the broadband service provider at the time could handle the outgoing traffic the computer itself struggled to provide a good and quality service to the players on the network, while simultaneously running the game on the same machine.

A professional server is a 24×7 connected computer to read data and transmit large amounts of data as fast as players need it. Many game hosting pioneers realized the need for such systems.They purchased rack mounted servers and collocated them within data centers to host their games.They paid between $200 and $700 a month for this luxury, and the teams that could afford those bills were way above the rest of the gamers and these setups significantly improved the game play. Within a few years online multiplayer gaming became a huge trend and success. Prices have lowered dramatically and renting game servers (dedicated servers to host game servers on) is something that has become very common for online gaming teams.

Dedicated servers are the preferred method of hosting game servers for most PC-based multiplayer games. Massive multiplayer online games run on dedicated servers usually hosted by dedicated server providers, allowing them to control and update content.In many cases they are run on clustered servers to allow huge environments and large player counts.