I'm confused as to why people are describing Apache and BSD licenses as "permissive". Really think about what that's supposed to describe. I think the word "permissive" is the wrong word to use. It gives the wrong idea of what the license is for. The GPL is far more permissive than those licenses are.

You are right though, the game engine could be dual licensed. I think the biggest problems the surround game consoles is that they subjugate the user more than non-free software does by itself. Not only are you running non-free software on the system, but you're not permitted to make the system do anything else. You're also not permitted to develop anything for the system unless you pay a ransom. Pay the ransom and you're "permitted" to create a game. That's only half the problem because publishing is still an issue for you. Not to mention that if you're trying to make money it would make sense to be on all the console if you can afford it. Since many can't then you've got to gamble with one. This does split the user base and it gives the hardware makers a huge monopoly.

I used to be a huge fan of Nintendo. I still think they make some of the most brilliant games but that is a separate issue from software freedom. If I modify my Wii I could risk having it get ruined by an "update" from Nintendo. I also have no option to publish a game for it because the cost is so high. Not to mention that the tools needed to develop a competitive title are non-free. I own a huge collection of console games but have made the decision not to buy any more. I will occasionally buy a really really cheap($3-4) used game, but that doesn't support the companies producing these games.

Looking forward things are only getting worse as companies are trying to do away with physical media and even limit how physical media can be used. I don't doubt at all that Sony would limit a disc to work in just a couple of consoles and otherwise render it useless.

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