What does NAT type mean for online gaming?

Summary
If you regularly play online games, you may have noticed a setting called NAT type or even got an alert about it. Here's what it means and why it matters.
Description from Engadget.
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What does NAT type mean for online gaming?
If you regularly play online games, you may have noticed a setting called NAT type or even got an alert about it. Here's what it means and why it matters.
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