A theoretical project for fans to develop the MORE code base has several obstacles to overcome, which I've listed below. All of these are pure speculation on my part and do not come from Cyan.
1) Finding people to work on the code.
This isn't as hard as I thought - see the other thread for the list of people who've "signed up" so far.
2) Getting Cyan to release the source code.
Beyond being the intellectual property of Cyan, the source code is the money maker for them as well. If they hand it over to select members of the fan community, anyone can change it and make their own game, theoretically. Having a non-disclosure agreement in place would somewhat mitigate the risk by leveraging penalties. But once the code is out there in the public, they cannot take it back.
[Note: going open source would effectively end Cyan's involvement in MORE's development, and with URU in general.]
One solution might be to make sure no fan developer has all the code. Distribution would be limited to just a handful of fan developers - maybe one developer per portion. It can be broken into discrete sets, according to purpose, e.g. the server and the client code. Both of them would use the Plasma engine code, but this itself does not need to be released to the community (as badly as we want it). It can be distributed as just libraries and headers to allow the server/client code to be compiled.
But this brings up another issue...
3) Packaging Plasma.
If it isn't in a standalone form already - where it is self contained and located separate from the applications - then there's major work to be done by Cyan before this can move forward.
There's some evidence that it already exists in this form, considering all the titles they have that uses versions of this engine: realMyst, Uru, Channelwood, Myst V, MOUL, Cosmic Osmo.
There's also evidence to the contrary. Cyan hasn't released the source code to their 3D Studio MAX plug-in because of code they want to protect - which can only be Plasma code. If it already existed in a standalone form, then there theoretically shouldn't be any work to be done on the plug-in code.
Let's give them the benefit of the doubt. Let's say they can distribute Plasma as headers and libraries to the select fan developers so that they can compile the client and server code. This reveals another problem...
4) Protecting Plasma.
The fan developer has been given Cyan's powerful game engine in a form that can be easily incorporated into their own title. Other than the NDA, what is to stop them from producing such a game?
They could introduce a hardware solution where, at run time, Plasma checks for the presence of some "dongle" before continuing execution. This would only be in the development version of MO:RE; the widely distributed release would not include this. But this again requires Cyan's time and resources to implement this, both of which they're lacking at the moment. They would just have to trust us in the meantime.
5) Access to Cyan's servers.
To allow the fan community to test MO:RE, Cyan would need to make their servers accessible: to install the latest version of the server code, to query the databases, to read the debug logs, etc.
This isn't that hard a problem. Secure remote-access solutions exist, e.g. SSH, VPN. Again, this would be up to Cyan's willingness to put this in place.
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These are just a few issues. Can anyone think of others? Or do you want to discuss some of these in more detail?