X is displays what you’ve opened on your server

X11 is a display server used by most Unix systems to display graphical content.

If the program you are trying to run really doesn’t require a graphical window, you can probably get away with tricking it into using a “headless” display server with the xvfb-run command. It can be installed with:

sudo apt-get install xvfb

Then try prepending it to your command:

xvfb-run wineconsole --backend=curses mb_warband_dedicated.exe -r Sample_Battle.txt

asb, I have tried and got this error:

wineconsole: Starting program "mb_warband_dedicated.exe -r Sample_Battle.txt" failed.
The command is invalid.
root@ottoman:~# XIO:  fatal IO error 11 (Resource temporarily unavailable) on X server ":99"
      after 138 requests (137 known processed) with 0 events remaining.

asb’s suggestion was a pretty good one, but if it doesn’t work, this is one way to install X:
sudo apt-get update && sudo apt-get upgrade -y && sudo apt-get install screen unzip xfce4 xfce4-goodies gdm

You’ll get an XFCE desktop environment that way, just like Windows.

You can start X using the command:
startx