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There is only so many concurrant threads you can have running, particularly in a video game


Simply not true. Videogames are perfectly suited for almost unlimited numbers of concurrent threads. Because of this graphic cards exist, which are not much more than specialized vector processors with dozens of pixel/vertext shader units, texturers etc. pp.

Now if you remove graphics, it gets a bit harder but sound processing, physics, AI can all be executed in parallel. It is not done most of the time because processing power for these areas is peanuts compared to the power required for realistic graphics.

Take AI: Starcraft et al. had very good AI for hundreds of onscreen units a decade ago. Its a bit more complicated in 3D environments but still. The thing is better AI etc. is seldom limited by processing power but by programmers.