Ubisoft CEO is a dumbass, companies like EA and Valve release their old game code because it costs them nothing and once it's EoL the good press from doing so is actually worth some tangible amount more than just hoarding it, especially after you've already done like Game of the Year / Bundles..etc and squeezed every bit of cash out of it already.
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Valve has released the source code for some of its older games and related tools on GitHub, including Half-Life 1 engine-based games and Source 1 games like Team Fortress 2 and Counter-Strike: Source
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EA has released the source code for several classic Command & Conquer games on GitHub. These include the original Command & Conquer (also known as Tiberian Dawn), Red Alert, Renegade, and the Zero Hour expansion for Command & Conquer: Generals. Additionally, they've released code for the remastered collection of the first two games
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more should do that, but the counterargument is "our customers are drug addicts who will keep buying our shit no matter how we treat them"
also if the old FPS game is free and people can host their own servers that means you actually have to do more than just release the same call of doody over and over and put forth effort in making a sequel that's good instead of just pulling the plug on the old game's servers to make people buy the new one