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Weren't those releases tied to Unreal?
Don't know.

i don't think so. they were standalone engines without any game content. i think the unreal tournament 2003 engine also got offered this way.

so this isn't really anything new. just a lot more publicity now...

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I remember downloading the UE2 runtime, but I think it was only intended for evaluation of the engine's abilities and it had a very limited set of features.

i think the engines had the full features. i am not sure if they came with editors but unrealed was available with some games anyway. they even offered very cheap (compared to the $350000 or whatever it normally costs) commercial licenses for successful indie projects.