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PS3 and Nintendo Switch OS use FreeBSD components.

Urban myth regarding the Switch, Nintendo uses its own in-house microkernel based OS.

And Orbis OS uses as much FreeBSD as Android/ChromeOS use Linux, in what gets exposed to devs.

Ditto for PS4 and PS5.

Isn’t that choice mostly dictated by BSD license allowing them to keep things proprietary instead of GPL requiring them to release their changes?

Yes a big part of that, is being able to design Orbis OS whatever they feel like without caring about upstream, same with using clang on the devkit.