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>Failing to understand this simple set of rules would disqualify a person from most jobs ever invented.

I think you dramatically over-estimate most people's literacy with games and movement in a virtual space, let alone most people's hand-eye coordination. How many people can touch type these days?

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Why would the amount of software engineers that can touch type be down?

You literally only place your fingers on the WASD keys and you move your character in a 2D (!) virtual space. With Minecraft it would be a completely different story, but Factorio is really accessible.

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