This is assuming that the player’s PC is able to graphically handle the raw requirements of displaying 100’s of people at once and the internet connection is able to do the same. Is the limiting factor typical size of data? The amount of processing power of the server? If it is beneficial to the player and the game that hundreds of people are in the area, why do games shy away from such? (especially if the game is not resource hungry) Some games have even regressed in the amount of players being shown/allowed in that area as they have aged.
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It depends on how the game is coded. When players are distant enough, often the game won’t even try to establish communication between them as their actions are unlikely to affect each other. But as players are closer together, their actions have to be communicated and represented on all other nearby clients. Ramp this up to 100’s of players in the same area, now the client is trying to render actions of all those players all in real time. This is often complicated by games which allow the players to customize their characters, adding more expensive rendering to display them.
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