Parts of the game logic are run on the server.
I don't expect more game companies to stay away from this; I expect them to do this a lot more for PC gaming. Probably not explicitly, but as much as people in /r/technology insists piracy doesn't matter, the companies continue to care. With online games, the need to worry about that largely evaporates.
Instead, I expect companies to put in proper rate limiting, fallbacks, and plan for the ability to spin up extra servers in case of high demand.