From my limited understanding the game's output shouldn't be more than the tokens dedicated. The game is technically a really long conversation meaning the longer the game is played the more tokens it will use up. Once that limit is reached details will start disappearing as old events will be overwritten with new. Meaning the context Tokens set in LM Studio are used for both the game's memory and outputs. Remember to uncheck the 1 paragraph response restraint in the settings.
Hopefully someone more knowledgeable on the subject will answer.