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In brief: a distributed network of game servers (*), with very flexible and scalable load balancing, rented to game devs and publishers at cheap and flexible pricing (thanks to reduced cost of HW and bandwidth compared to earlier periods of distributed computing, with the added savings derived from large economies of scale for the provider).

(*) in the widest meaning possible, including also storage, application and compute servers



Stwike him, Centuwion. Stwike him vewy wuffly! (Pontius Pilate, "Life of Brian")
A fart without stink is like a sky without stars.
TGS, Third Grade Shooter: brand new genre invented by Kevin Butler exclusively for Natal WiiToo Kinect. PEW! PEW-PEW-PEW!