There are lots of different tools developers can use to create games. There are many trial and free versions of software for those wanting to learn as well. Here is a list of some tools I have used and friend have used for developing. I am a huge fan of open-source tools as well because they are free and many times just as powerful.

Blender - A 3D modeling/animation tool that has a built in game engine as well. It can be a bit complex, but the longer you work at it, it can provide powerful results. Check out some of the movies created on the site. There are some great tutorials on youtube. Check em out.

http://www.blender.org/

Colibr�
Giuseppe Albergo
Blender Render - Created in blender (this is from the Blender Gallery at http://www.blender.org/features-gallery/gallery/art-gallery/)

XNA & Visual Studio - XNA pack for Visual Studio is great for developing Windows/XBOX/Windows Phone games or just applications using the various coding languages. There are great tutorials online and through the Game Creators Club via Microsoft. If we want to try and break into mainstream gaming with Christian Oriented games, porting for Microsoft/XBOX/Win phones will be one great way to do it. 

For VIS STUDIO EXPRESS VERSIONS

http://www.microsoft.com/visualstudio/en-us/products/2010-editions/...

For XNA 4.0

http://www.microsoft.com/download/en/details.aspx?id=23714

Terragen - Terragen is a powerful landscape creation tool for various things. There is a commercial license fee, but you can try out the limited personal non-commercial version which is great for learning and see if you want to buy the license. 

http://www.planetside.co.uk/

Created in terragen (from the website gallery at http://www.planetside.co.uk/gallery/f/tg2)

Gimp - Gimp is a powerful tool to parallel photoshop. The great thing is that it is open-source (free to use). I have never needed to use photoshop because of Gimps power. I am not saying not to use adobe products, but if you want to test the waters w/o having to buy expensive software, try it out with Gimp.

http://www.gimp.org/

I just stumbled across GIMP PAINT STUDIO, which is a plug in pack....there are some really incredible images made with this pack...I am in the middle of downloading it right now hahahha.

http://code.google.com/p/gps-gimp-paint-studio/downloads/list this is the link for the DL from Google.

JAVA Developing platform w/ ANDROID COMPATIBILITY:

Netbeans/Eclipse - Both tools provide great templates for creating JAVA GUI and the likes. Beyond the scope of that, are the Android SDK's which you can find and download. I love Android because it is a free scripting language that you can test for free on your android device or use a Virtual Android Device. Great tools with a GUI to create Android GUI.

Netbeans - http://netbeans.org/community/releases/70/

Eclipse - http://www.eclipse.org/downloads/

These are just some tools I use, but there are tons out there. I have never had to pay any money for anything I have used yet (and staying well withing the law and copyrights). However, future production will require some cost (commercial licensing). 

What I also love about these tools are their ability to cross-communicate. Generally there are import/export scripts you can find online (if they aren't already built in). 

For example: I can create models in Blender w/ action animations, create textures with Gimp, load and map them to the models in blender, export the Blender models into XNA, and use them for my game coding in XNA. There is great synergy with these tools. However, don't think that there are limited resources. There are plenty of game engines and tools to use out there. From Torque by GarageGames, World Machine for height maps and terrain generation, the ADOBE suite, and so many different tools. I just thought I'd start this discussion with my favorites. Feel free to add some and your comments on things that have worked for you. Enjoy, and have fun learning and creating games under the guidance and focus of our God. Just as we are to be armed it the Word of God, we should have the tools to develop as efficiently as we can. Use what God has blessed us with, and use it to bless/reach others --- especially the lost. That should be one of our main priorities.

-harry