I can see three major ways the internet has affected gaming and gamers.
1)Online games.
Some of these merely replace existing offline multiplayer styles with playing an opponent, like with a fighting game one on one. Some offer the ability to play more opponents than offline would allow, like playing a 10+ person FPS match without the piss off of splitscreen or lugging a bunch of TVs together.
But the biggest advancement would be massive multiplayer games. The whole persistent world concept doesn't exist offline. These games continue to go on as living societies when you're not playing. I'm not into these so far but the concept is fascinating and the possibilities are endless.
2)Information.
The internet offers instant access to gaming news, message boards/chat rooms, websites devoted to anything gaming past or present. This has made magazines lessen in worth considerably but offers gamers access to so much knowledge that wasn't attainable before.
3)Emulation and mods.
Emulation has done more to keep gaming's past alive than any books or all the compilations out there ever could. Also being able to download modifications for games whether it's a translation patch, new levels or new games is made easy by the internet.
Overall I think the internet is one of the best things ever to happen to gaming.
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