It's important to note that when you use dedicated server hosting, you don't actually own the server that you use. Instead of owning the server, you rent or lease the server from the host company. Some host companies will allow a rent-to-own plan so that you can eventually own the server by making payments. Servers vary by price, but an entry level gaming server can cost about $80 per month for about 1,000 GB of bandwidth. Larger servers can cost a lot more depending upon their capabilities.
Prices will also vary according to whether or not the the hosting is managed by the host company. In most cases, it is a good idea to have the host company manage your server, because it is cheaper than hiring a full-time IT professional to maintain the server for you. An extensive knowledge of the operating system being used in the server is required. The operating system will vary in each server from either Windows NT, Unix, Linux, or Solaris.
A dedicated server has some obvious advantages over other types of hosting. One advantage is the fact that the average server can handle a lot more traffic than shared or VPS hosting. An average server can handle over one million hits per day. Another advantage of a dedicated server is the fact that you have full control over the entire server, as well as the ability to add more IP addresses for those who wish to resell part of their server and make some extra money.
The disadvantages of using a dedicated server are mainly the high costs associated with it. Not only is it expensive to rent/lease a server from a host company, but it is also very expensive to maintain the server. It takes years of training to fully understand and troubleshoot a complex server. You can avoid this cost, though, if you are able to have your server managed by the host company.