True, “community” might not be the right term.
But nonetheless if the OG developer structures their license so that each version becomes open source after 5 years then people publishing that as is or creating forks will always be a few steps behind the official release.
Of course if the title has any kind of community support that crowd sourced effort has the potential to outshine the OG developer, its important they time their license to give themselves a head start.
I think Friday Night Funkin’ will turn into a cautionary tale here, by releasing their game with much hype and open sourcing their code the first 7 weeks in 2020-21 they allowed community to really flourish. The player community has created content and then content that builds on and responds to that content (both narratively and mechanically) for several cycles now. Much of this content is now viewed as core to the FnF experience by players but much of it is also now built around other people’s IP (video games, TV shows, music, etc)
At the same time The Funkin’ Crew has been quietly working on Friday Night Funkin’: The Full Ass Game but I suspect that as a commercial game bound by the resources of single dev team and the rule of law they will be hard pressed to compete with the community they spawned.
While this is a win for remix culture it might not turn out as being the most prudent business decision. On the other hand they pulled off a two million dollar kickstarter so ¯\_(ツ)_/¯
For a company that is iterating on its products this is probably fine from a mechanical sense but would be a nightmare for their IPs.
Consider the early Super Mario series:
If in 1990/people could legally make their own “lost levels”-esque remixes with the SMB1 engine that would be paltry competition with SMW.
Similarly if people started remixing SMW in 1995 it wouldn’t have stopped SM64 from defining the 3d platformer genre and presenting a very strong argument for the analog stick being required for any 3d console.
But if people could tell their own Mario stories, that might tarnish the brand. If that happened we might not still be getting Mario games today.
I’m not sure how you open source both engine and assets without losing control of the narrative.