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It's called that way, because if you loose, because the enemies cheat on you and you don't realize... well, you are a fool, sir!
(more info here: En.wikipedia.org)
I developed a game, where your goal is to design a CPU. It will run on Linux, so if you are interested in that kind of game please have a look and vote on Steam Greenlight:
I developed a game where you develop a CPU. Please check it out and vote for it on Steam Greenlight: