[hombre_fatal]

The problem with your idea is that nobody wants to play with cheaters.

Everything that makes the game fun is defeated by a single cheater.

So people are just going to choose between playing with 0 cheaters or go play a different game.

[waterhouse]

Years ago I read about some game service that detected cheating and put cheaters into games with other cheaters. The author said it was pretty effective.

[drewzero1]

Reminds me of Game Dev Tycoon's clever anti-piracy trick, where they released a "cracked" version of the game on file sharing sites shortly after launch. The "crack" disabled the copy protection but also changed the gameplay so that NPCs would pirate your products in-game and drive you out of (virtual) business.

[adambyrtek]

Good point, I haven't played games much since the late 90s and I'm returning to gaming only now (partially thanks to Proton), so my experience with multi-player is based mostly on modem or LAN parties with friends, where the social aspect helped to prevent cheating. I guess it's very different now when you can play with random people on the other side of the world.