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Free software:

Game Maker: very good and you don't need any programming experience to start making games. you can pay very little for a few great extras if you like.

Blender: Free 3D modelling software (I prefer it over Maya) that comes with a basic 3D game engine for games with little or no programming experience... you can learn python if you want to start programming

Gimp: free image manipulation software, like Photoshop, with bunch of extras and many great tutorials online, it can be used for blender or even Game Maker.

Irrlitch:ONLY and ONLY if you are willing to get into C++ programming, you can use any ide like VisualC++ Express or Dev C++ and have a blast :D with an easy setup


Cheap Game Engines

Dark Basic very good cheap software and a good start for game developing with a programming language (not the best but easier for small games). there are many projects in youtube for you to see

Torque: very good but a little long learning curve... haven't tries the game builder though. nut yu can make great games with this.