> For smaller indie studios, there are definitely better alternatives, but when it comes to the big packages, there's really just Unity and Unreal.
Or big studios can just build their own engine. Lots of big studios still do this. Once they run the math on how much licensing will cost them, they realize they can pay several inhouse devs to just make a bespoke engine for the same cost. And then further amortize that NRE cost over several titles.
Will this licensing change hurt big studios in the short run? Unlikely. Could it hurt Unity in the long run once big studios realize they can just build exactly what they want inhouse for the same (or less) cost? Much more likely.
As for small studios: small studios eventually become big studios. If they burn the small studios now, they won't have big studios buying from them in 5-10 years.