This sounds like a fun thing ... but I'm not too sure about entrance fees and prizes and all. Maybe if it started out as a friendly competition with name recognition and a virtual pat on the back the reward more participation would be obtained. I assume the simulator would be available to teams so they could test their code? (How about the source? Would this be developed independently ... or is community involvement being sought).
Eithe way, all I can say is now is too soon! Far too much going on to give it any serious thought (in school alone ... but also I believe there's some sort of robot competition approaching?

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