Companies like Valve and Epic have already amortized the cost of development of their engines - those are codebases that span 16 years, and both companies had multiple commercial successes. All it took was Unity to give a little nudge.
Now, IMO, the reason for giving so much for free is to keep a player out (Unity) and milk the cow one last time with the eventual royalties.
I think it's clear by now the next generation will be real-time raytracing (engines like Brigade [1]), so I wouldn't doubt they are already working on those, and to be sold in the old model.