As an ex-Unity dev, it's clear Unreal crushes Unity on the "AAA" vibe side, and Godot marches forward on the "indie" vibe side. The writing was on the wall - I personally switched to Godot and couldn't be happier. Tools have new versions before being deprecated, bugs get fixed (and fast!), and there's no looming threat of Unity coming down and squeezing more money out of our products
Unity is absolutely being squeezed between the two. I can't really see how it can compete with Godot at the low end; it's hard to compete with free, and most of the goodness in low end games is the gameplay logic, not graphics or animation. And Godot can only get better; look at how Blender ate the CGI tools market. This leaves Unity having to either compete with Unreal at the high end - a very high bar - or somehow finding a new business model. The switcheroo they tried to pull on their customer base can best be viewed in that light.
Godot isn't quite free if you want to release on consoles since those platforms are only supported by commercial forks, but I'm sure going down that route is still a hell of a lot cheaper than licensing Unity.
It's a bit of a weird edge-case, but the very popular Battlefield 6 is partially a Godot game. It's an odd hybrid of a proprietary in-house engine with Godot grafted onto it, which serves as a public-facing SDK for players to build their own content. I know that's not exactly what you meant but it is an interesting application in a major AAA title.
Battlefield 6 of all things includes Godot as core of the Portal map-building. Casette Beasts is what Pokemon wishes it was. Upcoming Planetenverteidigungskanonenkommandant looks gorgeous from the previews.
I don’t know if I could list something that matches say Cuphead or Silksong, but I do think that Godot is currently on a Clayton Christiansen-style worse-is-better ascent right now.
Maybe a bit of an exaggeration. But I think at least 30%. Unreal is popular too. Unity seems to be more popular for indie/coop/single player/certain art styles. There seems to be many more unity games overall, but a lot of them are very small.
I don't like Godot that much either - Imo what an engine needs is a clear and easy to use high-level API for grunt work, and good low level access so you can program your features just the way you want to.
If you understand how engines and rendering works in general you have an idea on how to implement something - but then you either run into A: a tool that can't quite do what you want but almost, B: an incredibly overengineered API that's somehow way more byzantine than OpenGL C: Some obscure quirk or bug of an existing feature that either works in a strange way, isn't documented, or is buggy.
In all these cases, doing the feature yourself is much easier than relying on the engine.