Abstract: Video game players may become matched with other players for the purposes of communication and/or playing together for the mutual benefit of each in an arrangement that uses a distributed network for implementing peer-to-peer connectivity in combination with a matchmaking server. When a player enters a new level in the video game, identifying information such as a level ID (identification) is registered with the matchmaking server which may be provided as part of a larger game service. Other players on the same level, for example, are located using a matchmaking query. A direct peer-to-peer connection is initiated between players, and position updates pertaining to the players are communicated in a peer-to-peer fashion. In an illustrative example, friends of players are given to friends who are ensured to be seen by reserving a predetermined number of connection slots for players or player characters on a friends list.