And what if someone lives in a country where there is no dedicated server?
Let's say that UC4 MP could have a UK server and there are 100 players from Cyprus playing that game... what's the benefit of transporting packets from UK to Cyprus and vice versa? Why would they enjoy having increased latency/lag compensation? And why should UK players play against Cypriots, just because they are on the same server/region (EU)?
A dedicated server is inherently fairer; with two people of identical skill and reflexes, if one is the host and the other isn't, the host will always have the advantage in a matchup, as they are working from effectively 0 ping.
The
ideal solution is of course the one pioneered by the forerunners of online multiplayer like Quake and UT, where you have "Server Browser" (streamlined to be matchmaking on consoles because someone at Ms once upon a time decided a list of servers was too confusing for console folk), "Host a game" and a seperate server-only version of the game for download that can be run by anyone to provide a dedicated server locally.
This is of course hugely at odds with modern business objectives, as a dedicated server wouldn't check if your online tithe is paid up, that you have grinded enough games to have your unlocks, perks and prestiges, and that you've bought all the DLC an season passes that comprise the bulk of that game, or be able to turn servers off when next years edition of that game comes out.
But in theory, best case scenario
for consoles would be a free XBL / PSN download of [insert game name] server edition, that you can run on a spare X1 / PS4 as a dedicated server, and let people connect to it.
I believe a few PS3 titles offered this functionality. This was obviously pre-online paywall.
The point being that it's not free to host a server for PC, it costs money, and basically PC players are relying on other people's willingness to pay for other people to play for free.
Hosting your own server can be effectively free if you have spare bandwidth and spare hardware capable of running the game in question (and given servers don't actually ened to run the entire game, 'capable of running' could be a laptop with shitty intel integrated graphics)