Gamers can be across the globe yet if you have good enough internet connection you can play with them, see what each other see and do inside the game real-time without delays.
In: Technology
You basically have a server with the map and all the events on it. When you log in it sends you all the part of the map Within sight, when you move your client gives the server the coordinates you want to move to and it replies with the updated view. Your character has a clone on the map doing what you do and when you enter another players view you are just part of the map packet he or she is sent at that instance. So when they fire a bullet or spell the server just maps the trajectory and figures out what it is going to hit and if it happens tobe your clone you get sent the new info your character reacts accordingly and your clone copies you.
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