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No I don't plan on licensing the engine. I was in the 3D engine licensing business for over a decade and don't think it's worth the time and effort supporting other developers when I can sell games directly to the consumers.
I'm not close to having a game ready at all. My next goal is to make a level editor that runs on the phone so you can drag 3D objects around, create lights, and manipulate their properties. I want to get all that implemented before I start cranking out games with it. It will work on the 3rd gen ipod touch. I plan on having fallbacks to turn off some of the effects so the games will still run on older devices. They just won't be very pretty
