Several companies have learned that lesson and profited wildly from it. I.E. HalfLife -> CounterStrike. Mind you, that company is run more by the engineers than the legal department and therefore a minority in the gaming business.
I have seen a couple companies in the software/hardware sector that are run by engineers. Ironically, they usually tend to be in better shape financially than those run by business people. They also tend to be less closed off when it comes to their products. ID use to be this way. They ENCOURAGED people to make their own mods for Quake. For some reason, several other game studios and all the major console vendors fail to realize that their stuff will be less buggy by letting more people look at it instead of less. Less bugs = better product = better profit margins.
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