Legendre

Shroud would be more accurate.
Fog of War does not regrow, whereas shroud goes.

shroud VS FOW is game specific terminology - many games using what you call 'shroud', use the term 'FOW' for it. In general terms, FOW just means youve got imperfect, inaccurate or conflicting information about or communication across the arena.

Yeah, I always thought FOW is the one that regrows while Shroud is the one that goes away once you explored the map.

Wiki has mixes the two terms: http://en.wikipedia.org/wiki/Fog_of_war#Simulations_and_games

Well, the first thing that springs to mind, even though its not a 1v1 game, is a Gary's mod game called Trouble in Terrorist Town.  It is, in fact, an FPS, however its more of a mind game than anything. 

 

http://en.wikipedia.org/wiki/Trouble_in_Terrorist_Town

 

I actually LOVE these sorts of games and wish there were more of them.  I love hidden agendas and secret keeping in a multi-player setting.  Regarding the Battleship idea, I think that sounds pretty fun, think about giving players 1 move plus 1 offensive action per turn or something like that.  Maybe give players the ability to fire some kind of deception round, which wouldn't hit anything but would give a false position to the opponent.

Yeah, I love "mind games" involving deduction, that doesn't heavily rely on luck (maximizing expected returns in the long run).

I think there is a lot of design space when it comes to games that revolve around hidden information. Not sure why designers haven't tapped into it yet. Maybe its because the standard idea of such games is poker which heavily influence design to incorporate gambling, bluffing and luck.

I mean for example: you have a hidden ship in firing range of an opponent's ship that has just revealed itself. You have an opponent to fire at the ship and reveal your position, or you can play mind games and stay hidden. Also, your opponent could have chosen to reveal that ship to bait you to reveal yours. And etc.

that would be any decent war game that implements fog of war

Oh yes. I suppose that is correct. Perhaps I should have said that I am looking for competitive 1v1 games with a heavy focus on or is built around hidden information, but yet not too reliant on bluffing like poker.

Strangely, I would still continue developing the same game I am developing using the same parameters and budget.

The bottleneck for a new developer is usually experience and skills. Too many new-comers think they can bypass the accumulate of experience and skills by hiring/pleading programmers and artists to work for them.

*I in fact secured around $10-20k venture capital through my contacts but is currently working with a $2k budget limit on a small version of my game because without the experience or skills, its just going to be a waste of money...

Best selling games of all time - http://en.wikipedia.org/wiki/List_of_best-selling_video_games

PC - The Sims, The Sims 2

PS3 - Gran Turismo 5, Gran Turismo 5 Prologue 

Mobile Paid Downloads - Tetris, Angry Bird, Pacman.

Maybe endless killing and violence isn't as dominant as we thought...