I'm not expert in this area, but my understanding is that for latency sensitive video games, on the client side, state is predicted between updates, e.g. the st

I'm not expert in this area, but my understanding is that for latency sensitive video games, on the client side, state is predicted between updates, e.g. the state may be updated via the network, at say, roughly 10Hz (probably faster, but probably less than 60Hz), but updated locally at 60Hz via interpolation, dead reckoning and other predictive/smoothing heuristics, a few missed updates just means a bit more prediction is used. "State" is not usually transmitted as one lump "frame" at a time, but rather per-game unit (per spaceship, asteroid, robot, or whatever is in the game) or per some-small-group of units. When some updates are delayed too long, you might get some visible artifacts, "rubber-banding", "teleportation" or "warping", etc. often lumped together by players under the umbrella term "lag". For out-of-order packets, older packets might be dropped as newer packets may already have been applied to the state of some game units (typically there's some timestamps or monotonically increasing counter associated with state updates for each unit used by the prediction/interpolation/smoothing heuristics) and the state is usually represented in absolute terms rather than relative terms (e.g. (x,y) = (100,100), rather than x+=10, y+=10, so that any update may be applied in isolation.)