Q3 is fine enough for most games
BS. It is
functional for boxed-in FPS's and 3rd-person shooters. But it simply doesn't look good by today's standards and you can't do anything remotely approaching "outdoors" with it.
Oh, and the code is hard to use.
Torgue is actually good, but it doesn't do everything
No, Torque (it's a "Q", not a "G") is not good. I'm a programmer, I've seen its code. It is crap.
Yes, you can make games with it. But nobody
wants to; they do it because it would be very slightly easier than making their own from scratch.
Second, divide 20M by 500,000. That should mean that I pay no more than $42 for a 20M budget game.
Nonsense. The store has to get its cut for stocking it, the distributer has to get their cut for shipment costs, etc. At the end of the day, the developer may only see $10 per copy sold if that. The increase to $60 allows developers and publishers to double the rate of return per game sold.
Further, this assumes that you can't expect
Second, are you saying that Tremulous and Enemy Territory: Quake Wars, wouldn't be good in a commercial market? Both of them are based off of an engine that's open-source, or have a similar engine available.
ET:QWs is already on the commercial market. And the Doom3 Engine (which ET:QW is based on) is most certainly
not Open Source. Also, if you have even a passing familiarity with ET:QW, you would know that they made
major modifications to the Doom3 engine for the game.
And no, Tremulous would not be good in the commercial market. Not for $50. Probably not for $20. It can't hang with CoD4, TF2, or any modern multiplayer FPS.
Third, ever heard of "Mount&Blade"? The shareware game that was made by a couple, and got a major publisher deal?
It was
started by a couple. They've expanded since then. Plus, they haven't actually released a game yet; it's still in beta.
Use Blender. It's free, open source, commercial-quality, and has its own engine with physics. You cannot convince me it's impossible to make a commercial quality game for little or no money. It's been done.
You think Blender3D's pathetic game engine can be used to create a "commercial quality" game? You've got to be kidding, right?