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pokoko said:
To offer some support for happydolphin, I don't think it's with blockbuster publishers/developers that Nintendo having a free engine would help with but rather for winning second level projects which might grow into more prolific franchises.

As an example, look at Demon's Souls, which used Sony's free-use engine. It's been a boon in Japan, with studios like Nippon Ichi and Gust employing it for several titles each. Perhaps Nintendo having a free engine could promote more projects of that level?

Thanks for this. It adds weight to the hypothetical, which is always hard to support without some form of historical to base it off of.

@Oni. I'm not ready to discuss ZombiU's sales, I'll just tell you that it's the best-selling 3rd party U game atm, and that should be enough to highlight the viability of the market on the U.

Scientific breakthrough: there's a link in OP about new position-based fluid physics for future NVidia chips. I believe this is more scientific advancement than dependent technical advancement but like I said I could be wrong here.