A computer-implemented system for providing a virtualized application hosting environment comprising: a plurality of application/game servers each having a memory for storing application program code and data and a processor for executing the application program code and processing the data on behalf of a client; a virtualization service executed on each of the application/game servers, the virtualization service comprising a file redirection module for redirecting file read/write operations generated by the application program code to one or more virtualized file locations; and a registry redirection module for intercepting registry operations generated by the application program code and executing the registry operations on behalf of the application program code at one or more virtualized registry locations.