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This argument is always pretty weak. All regulation adds cost and complication for companies. If that alone was a good reason to not add regulation, then taken to the logical conclusion, there should be no regulation on companies.

Regulation needs to be seen as a trade-off, for example: We get better behaving companies, and the cost is less risk taken. Then the question becomes "is the benefit worth the cost?"

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The argument should be stronger since the vast majority of regulation is as you say, the cost is not worth the benefit.

All regulation by default is anticompetitive and also comes with the risk of intended consequences, and thus must prove that they provide sufficient benefit. They are "guilty until proven innocent".

e.g., rather than trying to "just do something" about games, maybe we should revisit copyright law as a whole, instead of slapping a bandaid on a festering wound caused by the first bandaid

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I thought this was more "let people run the code themselves if they can figure it out" not "open sourcing". There's no appetite to force a company that reuses and improves their game engine on every new title to open source it, even an older version.
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That alone would be an improvement from the status quo, but the SKG movement does go one stop further in wanting publishers to be required to leave the game in a working (local) state of they design it to be dependent on central services they then shut down.

This could be as easy as releasing the tools they used for development when developing the game.

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That's really tough. Marathon, by Bungie, is a good example of why this is tough - it's basically all the Destiny engine, network, and tooling code. When they shut down Destiny, it's not like they have a snapshot of their tooling. They've been continuously updating that tooling for ten years, and now they're using that investment for a new project.

Most game studios are similar, in reusing and improving a whole development architecture and systems across many titles. I would not agree with making them release that, even an older version. That's a big competitive moat for some studios.

I think if a community group wants to PAY to operate a server, that's quite reasonable. And then you still end up with a fight about how much to charge. But I don't think handing over server code is the right move.

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