Great question!
NAT (Network Address Translation) and is a fundamental part of computer networking. In the most basic sense, NAT allows for the routing of internet traffic through a network. Our system, like most other large networks, uses NAT to route traffic from the internet to all of your devices.
Gaming systems categorize NAT with three varying levels: Type 3 or Strict, Type 2 or Moderate, and Type 1 or Open.
Gaming consoles will sometimes run into NAT issues when attempting to use online services such as XBOX Live or PSN. You may do a network test on your gaming device and it should tell you that you have a Strict or Type 3 NAT. This sometimes causes issues with online services such as voice chat and matchmaking when performing peer-to-peer gaming.
This is due to the way that companies such as Microsoft and Sony have set up their gaming devices to connect to other gaming devices. A device with an Open NAT can connect to Open, Moderate, and Strict NAT types; a device with a Moderate NAT can connect to Moderate, and Open NAT types; and a device with a Strict NAT type can only connect to devices with an Open NAT type.
By default, when you add your gaming device to your account, your device may receive NAT Type 3 errors when you try to use online gaming services. However, changing to NAT Type 2 removes most of the problems you will encounter and we would be happy to help you get your gaming device to the correct NAT type.