Picture trying to play your favorite online game with friends, but every time you move your character, there’s a three-second delay before anything happens. Or imagine if every time someone’s internet hiccupped, the entire game crashed for everyone. These nightmares were real challenges that early online gaming had to overcome, leading to the sophisticated network infrastructure that seamlessly connects millions of players today.
From Single Computers to Connected Worlds
Before online gaming, video games were isolated experiences. You could only play with people physically sitting next to you, sharing the same console or computer. The transformation to online multiplayer required solving a fundamental problem: how do you make multiple computers in different locations act like they’re running the same game at the same time?
The first breakthrough came in 1989 with Sierra On-Line’s “The Sierra Network,” the first subscription service fully dedicated to online gaming¹. Running on MS-DOS, it featured customizable avatars and offered various games under a monthly fee, setting the foundation for modern online gaming communities.
By 1993, Sega demonstrated something revolutionary: an online version of arcade OutRunners that allowed up to eight players across two different cities in Japan to race together, connected via an Integrated Services Digital Network (ISDN)¹. This proved that real-time gaming across vast distances was possible.

The Three Pillars of Online Gaming Architecture
Modern online gaming relies on three main network architectures, each solving different problems:
Peer-to-Peer (P2P): In this system, players connect directly to each other’s devices. One player acts as the “host,” and their computer becomes the central authority for the game. This is cost-effective and easy to set up, but the entire game’s performance depends on the host’s internet connection and computer power². If the host has slow internet or their computer struggles, everyone suffers.
Dedicated Servers: These are powerful computers whose only job is running the game for multiple players. Unlike P2P, no player has to sacrifice their computer’s performance to host others. Dedicated servers provide consistent performance and can handle larger numbers of players, but they’re expensive to maintain².
Cloud-Based Infrastructure: The newest approach uses massive data centers with hundreds of servers working together. A recent study found that 78% of gaming providers now use public cloud infrastructure to deliver games to players³. This allows games to scale up or down based on demand and provides backup systems if something goes wrong.
The Magic of State Synchronization
The biggest challenge in online gaming is keeping everyone’s game world identical. This process, called “state synchronization,” ensures that when you see an enemy at a specific location, every other player sees that same enemy in the exact same spot⁴.
Here’s how it works: The game constantly tracks the “state” of everything—where every player is standing, what direction they’re facing, how much health they have, and what actions they’re performing. This information gets packaged into small data packets and sent between all connected players or to a central server.
The server acts like a traffic controller, receiving updates from all players, deciding what actually happened (since internet delays can make things confusing), and then sending the “official” version back to everyone. This happens 30 times per second for real-time games⁵, creating the illusion that everyone is playing in the same physical space.
Fighting the Enemy of Online Gaming: Latency
Latency—the delay between when you press a button and when the game responds—is online gaming’s biggest enemy. Even light traveling through fiber optic cables takes time to cross continents, and that delay can mean the difference between victory and defeat in competitive games.
Game developers use several clever tricks to hide latency:
Input Prediction: Your game client predicts what will happen when you press a button and shows it immediately, before the server confirms it⁴. If the prediction was wrong, the game quickly corrects itself.
Lag Compensation: Servers keep a history of the game world, so when your delayed action finally arrives, the server can “go back in time” to when you actually performed the action and calculate what should have happened⁶.
Entity Interpolation: This smooths out the jerky movement that would occur if characters only updated 30 times per second, making movement appear fluid even when data arrives irregularly⁴.
The Infrastructure Behind the Magic
Modern online gaming infrastructure resembles a massive, invisible highway system. Game companies use a combination of cloud-based servers, edge computing devices placed close to players, and traditional data centers to minimize the distance data has to travel³.
Major cloud service providers like Amazon Web Services, Microsoft Azure, and Google Cloud have built specialized gaming infrastructure that can instantly spin up new servers when a popular game launches or shut them down when demand decreases. This flexibility prevents the over-provisioning and under-provisioning problems that plagued early online gaming⁷.
The network infrastructure includes high-speed internet connections, specialized routers, and switches that prioritize gaming traffic over other types of internet data. Companies like Cisco Systems and Juniper Networks have developed networking equipment specifically designed to handle the unique demands of real-time gaming⁸.
The Modern Gaming Network
Today’s online gaming infrastructure is so sophisticated that millions of players can simultaneously inhabit virtual worlds without thinking about the technology making it possible. Games like Fortnite regularly host 100-player matches while maintaining smooth performance, something that would have been impossible just two decades ago.
The infrastructure has become so reliable that new gaming paradigms are emerging. Cloud gaming services stream entire games over the internet, eliminating the need for powerful local hardware. Virtual and augmented reality games are pushing network demands even higher, requiring ultra-low latency to prevent motion sickness.
From those first tentative connections between arcade machines in different Japanese cities to today’s global gaming networks supporting hundreds of millions of concurrent players, online gaming infrastructure represents one of the most impressive engineering achievements in modern computing. It’s a testament to human ingenuity that we’ve made the complex simple, allowing players worldwide to share digital adventures as easily as sitting together on the same couch.
Sources
1 – History of online games – Wikipedia | https://en.wikipedia.org/wiki/History_of_online_games
2 – Peer to Peer vs Dedicated Servers: Pros and Cons Explained – Pine Hosting | https://pinehosting.com/blog/dedicated-server-vs-peer-to-peer/
3 – The Future of Cloud Gaming Infrastructure – Megaport | https://www.megaport.com/blog/the-future-of-cloud-gaming-infrastructure/
4 – The Role of Game Networking in the Fusion of Physical and Digital – arXiv | https://arxiv.org/html/2302.01672v6
5 – How do multiplayer games work? From simple to complex – N-iX Game Studio | https://gamestudio.n-ix.com/how-do-multiplayer-games-work-from-simple-to-complex/
6 – The pros and cons of Lag Compensation – Something Like Games | https://www.somethinglikegames.de/en/blog/2024/pros-and-cons-of-lag-compensation/
7 – A Rundown of Cloud Game Infrastructure – LinkedIn | https://www.linkedin.com/pulse/rundown-cloud-game-infrastructure-muhammad-aatif-bashir-choudhary
8 – Understanding Gaming Infrastructure – FasterCapital | https://fastercapital.com/topics/understanding-gaming-infrastructure.html