Didn’t Intel try the same thing a while back? It hasn’t exactly made great waves in shipped games so far.
I think and have the odds on their side.
Game engines are large, complicated beasts, that require a lot of special kinds of code that outside developers just don’t know about.
This means that game engine companies need to have that as their focus, their reason for living.
A game engine trying to make a life as a separate division inside a large, corporate entity, has the odds stacked against it.