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"Between the game servers and 3rd party dependencies, Splitgate 1 is costing us about $40-50k per month" "3rd party dependencies" is doing some legwork here, because I don't know if I could spend $40k/mo on game server cloud compute if I tried

Some hasty projections: with 100 machines (each hosting a single game server process, I'm assuming 6 players/game server) + 200 machines for services (authentication, matchmaking, etc) + 100 TB MySQL database, I'm getting $35k month

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100 "machines" for 100 concurrent clients? More realistic would be around 20 virtual servers. I can't imagine the game needing high specs, its a simple arena shooter. They either outsource and get ripped off, pay shit ton for anti cheat service or straight up lie

I'd really hope that your game server processes could host more than one game each (I chose c6g.xlarges for these!), and that's already capacity for 600 players: Splitgate 1 peaked at 450 players over the past 3 months - there's absolutely no need for this many boxes

Totally fair to be miffed about! What I expect is sucking some money here is that they are probably working with a company that manages their infra for them, those can charge big amounts but can be worth it for larger titles. The Unity-owned Multiplay, who operate Apex Legends, would be an example.