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Re:Valve Announces Source 2, and It’ll Be Free by vidarh on Wednesday March 04, 2015 @02:53AM (#9143184)
I'd go much further back. The idea of turning the game engines and tooling into a commodity dates at least as far back as the early 80's, and I'd expect it dates back to before that too.

The first game creation tools I used, were:

The Quill, 1983: https://en.wikipedia.org/wiki/The_Quill

The Games Creator, 1984: http://www.lemon64.com/?mainurl=http%3A//www.lemon64.com/gam...

Shoot-'Em-Up Construction Kit, 1987: https://en.wikipedia.org/wiki/Shoot-%27Em-Up_Construction_Ki...

At least SEUCK has been used to make commercial (indie) games, and I think The Quill has too.

While not free, these were cheap. Cheap enough that kids were getting them.

Re:Valve Announces Source 2, and It’ll Be Free by SyneRyder on Wednesday March 04, 2015 @04:52AM (#9143450)
SEUCK was £19.95 in 1988[1] and the price had crashed to just £5.99 by 1992[2]. Even accounting for inflation, that must have been less than £50 / $75 in today's money.

SEUCK was awesome - I wonder whatever happened to Shaun Pearson, the guy who made all those SEUCK games for the Zzap!64 Megatape. I think Outtake Two convinced me to buy my copy of SEUCK.

[1] http://amr.abime.net/review_37278

[2] http://amr.abime.net/review_49823