Does it have to be a pure terminal game?

How about making a game in a game engine that emulates the look, feel and interaction with a terminal?

No it doesn't have to be pure terminal if you prefer making a game in an engine. Actually multiple games pulled this trick already and executed it perfectly!

'Stories Untold' is a great example: https://store.steampowered.com/app/558420/Stories_Untold/
As long as it is 'close enough', I'm fine with it.

(Sorry for late response)