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Yes.
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Start up a third person character project, either in C++ or Blueprints. On Play settings (the drop down menu) change the number of players to two. Make sure that the Dedicated Server box is unticked. Play the game.
Go into the client viewport and open the console. Type in Net PktLoss=60. This magnifies the jittering effect. In the (listen) server viewport, you will see the client instantly moving to its most updated position without any interpolation, which causes the jittering effect.
Close out of the game, and go back into the Play settings. This time, check the “Dedicated Server” box. Now, on any of the client viewports, type in Net PktLoss=60. You will see that the movement is being properly interpolated and there is no jitter.
This leads me to believe that the movement component’s interpolation is not supported on listen servers as of right now. It’s not an issue for large dev groups because they will write their own interpolation code, but it would be nice for smaller teams or individuals who use UE4. Thanks!