First I'd like to say I don't know a huge amount about game/engine development or design, so please correct me if this is horribly wrong. Valve has been using the Source engine since 2004 now, it's still updated regularly, runs fine and looks pretty good, with this in mind it seems unnecessary to start from scratch every few releases unless a certain leap in technology calls for it. As long as the engine is built well and has good developer support I don't see a problem. This isn't about money, it's just a practical design decision.

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