I'd heard about PushButtonLabs from Jeff Tunnel's blog Make It Big in Games
, but I didn't realize they were creating an Open Source engine. But it makes sense, considering he says he thinks that games are going to be getting cheaper and cheaper until they are free. Or at least for some markets.
As an example of the future, look at the game section of the iPhone App Store. In this market, the right price for a game is $0, and I believe that is where all game prices are heading. For a while, there will be successes at $3.99 to $1, but eventually, I think you will see capitulation to the $0 price point.
Why are games going to what many see as absurdly low price points? It is a simple answer. Supply and demand. It used to be difficult and expensive to make games, so few people had the knowledge to create a game, and even if you could figure out how to make a game, there were only a few distribution outlets. There was no Internet, so only a few games could be brought to the few shelves open to selling them. With relatively few games being made, and fewer being distributed via hard media, games were scarce, resulting in high price points.