I don't believe that the presence of the code in Linux has ever had anything to do with it, it's the alleged copyright that SCO wrongfully staked a claim on. Then switched to trade secrets. Then licensing fees.
They originally breached the licensing agreement with Novell and refused to defend themselves, opting instead to continue filing frivolous lawsuits against anyone using or supporting Linux, then claiming the proof was secret and they wouldn't discuss it in open court.
Their misunderstanding of what they sued AutoZone for is a hilarious story, too.
And when SCO tried to claim copyright on GPL'ed code.
And then the consultants that found no evidence of copyright infringement in Linux code.
Your view of history is severely muddled, and I'm not even sure what this has to do with videogames. SCO (and it's many incarnations) was essentially a licensee of Unix that misunderstood what Unix/Linux was and attempted to be an early incarnation of a patent/copyright troll. That 'little guy' deserved the beating they got.