One of the fun features that I developed for Warcraft (the RTS) was to fade the screen to grayscale when the game is paused. Since the game uses a 256 color palette, it was only necessary to update a few bytes of data (3x256) instead of redrawing the whole screen, so the effect was quick. I also used this trick when the game stalled due to missing network packets from other players. Initially the game would still be…
And in the "this is why we can't have nice things", that also introduced problems, because we didn't want a player who was losing to keep pausing the game until the winning player quit out of frustration, so I think we kept a per-player pause counter, which would only be restored if other players also paused? (I don't quite remember all the details, just that we had to prevent yet another abuse vector).