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What? How do you think multiplayer games work. lol
Tell me how they work, if you are trying to insinuate that mentioned things are required somehow, I won’t laugh.
Cloud based gaming servers are simply flexible game servers that have multiple international locations with dynamic load distributions instead of old fixed location game servers. There’s literally nothing wrong with that over the old and less flexible method because this gives you servers that are closer to your personal location, which means less ping, and them being able to scale means it is less likely of them just crapping themselves under heavier load, because they can scale up dynamically when needed.