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Manual (really clutchless semi-automatic) in games typically doesn't simulate a manual gear box in a real car that well, but it depends heavily upon the way the individual game was coded.

Generally, those who drive a manual in real life will drive with button shifting in games since they're used to downshifting into corners and shifting up in the straightaways. If the simulator's done right, driven properly, the car's engine should stay in the peak torque range for optimal engine response and acceleration (rare). If not, it really doesn't matter much.

Automatic in real life: better transmission for stop and go traffic or if you live in the hills with stop lights and stop signs. Manual: a more connected driving experience when matched with a good engine. But unless the engine is responsive and/or (preferably both) produces respectable torque, it doesn't make a significant difference for daily driving.

New automatics in top tier sports cars can currently outshift even professional car drivers. Unfortunately, these are not like the automatic transmission in your car.

Daily driver: FF automatic.
Weekend racer: Nissan S14 with S15 spec SR20DET/6spd transmission tuned in the range of 350-400HP at the rear wheels @ 18lbs of boost via GT2871R turbo and 740cc injectors.