You're right, it's gratis. I highly doubt it'll satisfy the definition of free/open source software, as it'll (understandably) lack redistribution rights.
It's still a highly daring development model, all things considered. The concept itself is hardly new, but it's the first time an AAA developer has adopted it. Correct me if I'm wrong.
It also won't satisfy the definition of free/open source software in that the source code likely won't be available under an open-source license (though they're using GitHub, so maybe).
They didn't say word one about the code being open; just the development process and the progress they're making.
