The game industry has transformed from localized, hardware-dependent experiences to vast, globally interconnected digital ecosystems. This transition has placed an unprecedented strain on network infrastructures. In competitive multiplayer environments, even a delay of a few milliseconds can determine the outcome of a match, making latency the primary challenge for modern gamers. Historically, cloud computing has provided the scalability needed to host massive multiplayer online games. However, centralized data centers are limited by the physical distance that data must travel to reach the user. As the demand for real-time responsiveness and high-quality graphics continues to grow, the industry is increasingly adopting edge computing. This distributed computing approach aims to bring computation and data storage closer to the data sources. Edge computing is a networking philosophy and a distributed IT architecture focused on positioning computing power as near to the source of data generation as possible. This paper explores the fundamentals of edge computing and its critical applications within the gaming industry.