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I think self-hosted servers are one of those things that do not scale as playerbases grow, as casual players get added who have zero interest in hosting servers. Look at Minecraft which takes advantage of this by offering Realms, a paid server to host servers. There isn't even a public realm option, I believe, it is all friends only.

With multiplayer versus games that do not have a persistent world that players feel is their own, there's even less incentive for a player to want to host their own server. Minecraft is still an example of this: even without any Mojang hosted servers, the majority of players aren't joining random servers from a server list. They're joining the well-known and popular server networks, like Hypixel or Mineplex.




Of course they scale well. Each server gives space for N players.




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