Yes and no, you need at least lobby and game wide chat/voip.
What big companies love to forget is that biggest multiplayer games were strong because they had strong community.
WOW decline started when they added crosserver groups, and that LFG system. From that point idiots/jerks and trolls did not need reputation or friends anymore, so they al lacted like idiots, community was killed by it.
Same with Fortnite STW, lack of game wide chat (they had it in beta), makes this game feel empty.
So if biggest selling point of your game is multiplayer you need server side for chat, lobby and cheating protection.