Open source is about the convenience to developers and business. It is a valid business reason to do so. Where it might actually help a competitor companies are extremely careful not to release the source code. It's why Intel releases 100% of the source and NVIDIA/AMD won't. You find that in a lot of cases its the lesser performing of the hardware which is really well supported in GNU/Linux. Humorously this frequently gives it a significant advantage from an ease of use stand point and speeds up a persons computer too. When source is shared between programs/drivers/etc the quality of the code improves and there is less demand on system resources. This is generally speaking of course.

The solution to the gaming problem (lack of quality games) is to start businesses and promote the free software business models in the game arena. It's a bit of a step to go from what I do to running a development shop that creates free software games. However I don't see any reason the same thing can't be done for games what we're doing/going to do for free software.

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