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It would be amazing if Valve made Source Engine open source, but that would require them to replace Havok and perhaps other middleware.

Many games from this era were free homebrew Half-life mods. I think Valve should do more to promote hacking and modding their games.

Counter strike was created as a mod by the community as well as day of defeat.

I do believe that almost all of Valve's games started out as mods.

One could make an argument that all of their games started out as mods, in one way or another.