It depends on the network protocol and what data they are transmiting. 1000 people for FPS are not big problem (no special AI, low numbers of NPCs), especialy if you sent some not important data p2p. Our server is able to handle 32k + NPCs without any problem.
For example even old MMO on TCP/IP is generating cca 2Mbit per 100 players. Nothing.
If were designing such project, I would send graphic sync and other not important information p2p and use server only for critical arbitration. It is even possible to use distributed arbitration for movement (it typically eats majority of resources).This could lower HW and bandwidth needs 10 - 100x. Generally I dont see any technical issue from network point of view.
Of course if they decide to “bruteforce” it without ptp optmizations, some UDP and distributed arbitration, they can have traffic hundreds of Mb/sec and need for lots of cores.
Far more interesting is displaying 1000 players at once. This is reason, why player models are same, everybody likes batching.
As neat as 1000 player battle is (not knocking it, its a hell of an achievement if it works), eve-online’s space-battles have been significantly larger than that, so no its not going to be setting any records I’m afraid.
Biggest I was in was at least 2500 ships. Giant frigging lag fest with the server shitting itself multiple times, but by lord it was epic.