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Allot of games no longer support self hosting servers. Devs claim its to increase consistency of their games and blame end users who host on sib-par connections or hardware for other players javing a poor experiance in game. So the nost simple sollution is for devs or publishers to make hosting a closed enviromwnt where you have to rent servers from companies who specialise in such services.
Sadly, the days of hosting mutiple slot servera from some adequate hardware on a 100/100 fibre connection as a personal service to others is going the way of the dodo.
Many games have stopped supporting self hosted dedi's. Without looking up or listing them all, the biggest name I can think of off head would be the Battlefield Franchise and EA with their rent-a-server program.
But I know it was an issue starting years ago, as I used to self host myself and started having games I could not host for as the devs and publishers had removed the option.
Are there still some out there? Yeh
Is stand-alone dedicated support for end users something common or standard like it was at the end of the 90's and early 2000's where every online game had it as an option? Nah... Those days have passed.
Therefore, asking what game, is a very valid question. Should he reply something like BF1 the anwer will be that hardware doesnt matter. Should he reply he wants to host L4D2 or Minecraft it will be a different story...
In therory that would be fine, but again, thats why I am asking what games...
If you just want to host a Halo PC dedi, I used to host 16 player servers of that on a P-III @ 800Mhz and 512MB ram...
If you want to host something like ARK its an entirely different animal.
Also, though hardware does matter, the connection is just as, if not more, important, What type of connection with your ISP do you have? Do you have a dedicated IP?
Instead of beating around the bush, be specific.
A) what game or games
b) what it the type and speed of your ISP
All offer up to gigabit, so all could potentially be an option for one trying to self host, but each has it quirks and proscons.
As for you speeds, you will be fine for hosting things for you and friends to play on, and might be OK to host one larger public server, up to maybe 24-32 slots... much over that and you will run into issues with upload more than likely. And even then you might have to go a bit lower for good stability in public slot count.
Some games are lighter on network traffic than others so you will have to figure out the load as you go.
120 down is fine.
Also keep in mind that you are not on a backbone, so when people search for servers you will always end up with a higher ping than a true dedi in a server farm.
As for the hardware side of things, going on a guess I am thinking Civ will be the most demanding to both CPU and memory, with terarria probably behind that, but those are just guesses.
http://steamcommunity.com/discussions/forum/11/2949168687329267664/