One of the world’s largest telecommunications and Internet service providers, Level 3 operates the infrastructure that keeps online gaming sessions running smoothly and securely. TelecomsTech spoke with James Taylor, Director of Cloud Services for EMEA, about how the company supports the gaming industry.
Gaming has rapidly become one of the most important global entertainment sectors, with production budgets and revenues often rivaling or exceeding those of major Hollywood films. A notable example is Grand Theft Auto V, which reportedly cost around £170 million ($270 million) to produce and generated roughly £500 million ($800 million) in revenue within 24 hours of release. The online component of such games can drive enormous traffic spikes when they launch.
Level 3 is a Tier 1 network provider, offering core transport, IP, voice, and video services across North America, Latin America, Europe and select Asian cities. After acquiring Savvis in 2006, Level 3 expanded its content delivery network (CDN) to serve major content providers, including streaming video and music platforms.
So how does Level 3 help game developers and publishers? According to James Taylor, the company’s core offerings are designed to meet the demands of modern gaming workloads. Level 3 operates roughly 300 data centers connected to its IP backbone — one of the largest in the world. That reach reduces network hops and latency, improving reliability and responsiveness for gamers.
The company’s CDN is another critical element. Digital marketplaces, downloadable content, and frequent patches are now standard for many game titles, and a robust CDN helps deliver those assets efficiently at scale. Level 3 works with major gaming industry names, including EA and Valve, and its CDN handles traffic volumes measured in multiple terabits per second during peak periods.
One ongoing industry discussion is the shift from player-hosted matches to dedicated servers. Dedicated servers, such as the large-scale deployments Microsoft provided for the Xbox One launch, host matches centrally so all players connect to the same authoritative server. This creates fairer play and isolates other players from the effects of a single participant’s poor connection. By contrast, player-hosted matches place one participant in the role of server, giving them potential latency advantage and causing everyone to suffer if their connection degrades or drops.
James observes that while the full transition to dedicated infrastructure can take time, many game operators will eventually require extensive, distributed server deployments. “Running 300 data centres globally, and supporting many gaming companies; we can see how big certain deployments and how distributed they have to be sometimes,” he says. “From our perspective, we can see a continued growth and requirement — whether it’s dedicated or shared player-servers.”
Game streaming services — where rendering happens in the cloud and video is streamed to a thin client — have attracted attention through services like OnLive and the upcoming Gaikai integration on console platforms. James describes them as an example of the broader move toward cloud-based technologies. He believes streaming will gain traction as home entertainment setups become more integrated and minimalistic, eliminating the need for physical consoles or boxes. At present, however, he sees streaming as promising but not yet essential for the majority of gamers.
Peer-to-peer (P2P) or torrent-style downloads have practical advantages for delivering large game files, especially at launch, because they let users fetch file segments from multiple peers, increasing throughput and reducing load on centralized servers. Despite these benefits, Level 3’s gaming services emphasize reducing dependency on bundling P2P clients with game installers. James explains that while P2P was much more prevalent a decade ago, adoption has declined. Gamers and publishers can be put off by the requirement to install additional client software and by the complexities of seeding and managing that technology. Hybrid approaches, such as peer-assisted delivery backed by dedicated servers, are often used by studios like Blizzard to ensure reliability while still leveraging peer distribution benefits.
Security and protection against distributed denial-of-service (DDoS) attacks are another major concern for gaming companies. High-profile incidents, like the prolonged outage of a major console network, demonstrate how damaging attacks can be to a brand’s reputation and revenue. James notes that gaming companies are highly visible online and often targeted more than other sectors. For titles that monetize heavily through microtransactions or freemium models, even short outages can translate into significant financial losses.
When asked which game he thinks is pushing industry boundaries, James highlights Wargaming’s World of Tanks. He praises the title as a strong example of the freemium model done well: a high-quality, free-to-play game that successfully drives revenue through in-game purchases without compromising core gameplay.
Overall, Level 3’s network, CDN, data center footprint and security offerings position it to support the increasing technical demands of modern online gaming, from timely digital distribution to low-latency multiplayer and DDoS protection. As game experiences continue to grow in scale and complexity, the underlying infrastructure will remain a critical piece of delivering smooth, reliable play for global audiences.
What are your thoughts on Level 3 and the role of infrastructure providers in gaming?