For most game servers, I would advise against a VPS. If you're not getting problems at first, you definitely will at a later point. As your traffic grows (read: players), you would most likely hit the top of the server capacity. If it's a VPS where the total resources are shared with all other people on that server (e.g. OpenVZ), you'll be told by your host to stop what you're doing or upgrade. If it's a VPS that guarantees resources to you (like KVM-based VPS's do), you'd experience very slow operation and again - will be forced to upgrade again. Either way - at some point your VPS pricing will exceed that of a good dedicated server, which you should go for in the first place, if your budget allows it.