Free as in freedom not as in price
free as in freedom = i give away the game to everyone i know for free, and the studio loses out on those sales.
edit: oops, just noticed you are the same person i suspect is trolling. so, probably best for us both to end the conversation here.
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It's fine to say you don't think it works in theory. But in practise many people have made their living this way for many years.
Free as in freedom not as in price