Both VPS and managed game hosting can run game servers. But there are important differences.
Managed game hosting
Everything is set up for you: panel, game installation, backups, DDoS protection. Perfect for those who want to focus on the game, not server administration.
VPS
You get an empty Linux server and do everything yourself. More control, but requires technical knowledge.
Recommendation
Start with managed game hosting. Switch to a VPS when you need more control or want to combine multiple services (game server + website + Discord bot).