Direct answer

Large crowds can add player movement and collision work. The server can experience tick load while nearby clients separately suffer rendering FPS loss.

How to check it

  1. Profile a crowded lobby during a real event and record online player count and average/peak MSPT.
  2. Compare players stacked in one location with players spread across multiple areas of the same world.
  3. Check for plugins that repeatedly teleport, push or apply velocity effects, which can make collision work look more expensive.

Example: A crowd of players standing still in one lobby may have less server collision work than the same group being repeatedly pushed by a plugin. Keep activity comparable.

What to change

Redesign spawn areas and event queues to prevent unavoidable crowding. Only change collision/team behavior when gameplay and minigame requirements permit it.

Software and version notes

Disabling player collision may change PvP or lobby interactions; scoreboard-based collision rules are different from Paper entity activation and tracking distance.

Verify the result

Test normal movement, combat and minigames with the same event size, alongside peak MSPT.

References