One problem I have seen with some maturing projects is that mid-way through, someone decides they don't like the direction the project is taking so they decide to split from the main group and form their own project. There is that potential here, especially due to the wide range of focal points people have with respect to where they see the game going. (Someone may release a more simulation based project, another might go for game alone, irrespective of any extensibility issues...)
Why is that a problem? Surely that's an asset.
Don't believe me? There are plenty of examples where this has meant the evolution [even survival] of major projects - GCC was forked and the fork remerged some years later having been a massive improvement, Xorg is a complete fork of XFree86 by frustrated developers and now a far superior codebase.
So what if somebody takes what exists and makes it into another project. It means two games for the [developer] price of one. They will most likely go in different directions or one will emerge as the right way to go and the other merge into it or die out because it's the wrong way to go. Of course, it's not quite that simple (e.g. one project could succeed because the developer[s] are more motivated rather than doing better things) but if it means the survival of TE as a game then surely it's a good thing for the game.
The decisive factor is what you want out of the project. If the most important thing is a playable game, then open source is best. There could be a fork, but only if the project is badly managed or needs to split to satisfy two audiences. If you are writing this game for yourselves and want complete control, no matter what, then closed source is probably best.
To the players the difference, at the end of the day, is negligible if the end product is freely available. However, I strongly believe open source is more effective as a development process. You are creating the game for the community, right? So it doesn't matter if somebody improves on your work and everybody gets to play, right? Or are your reasons more self-involved, in which case open source is so not the right path for you to take.
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