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I don't know the Limitations or Abilities of the Engine, I have not studied it extensively, personally, but I have played a basic game written by a friend using Blender "Game".
Blender is a multipurpose 3D (primarily) model creation, editing tool, it can be used to create and rig models for various game engines; with it's powerful picture and video compositing tool and render engine, it can be used to create 3D Art and enhance video. It can be used to create videos from image sequence pictures and sound or creature full length feature films; it can be used to add animation to models for use in SFM and with it's game engine the creation of 3D games.
So, nope, not a game.....
the BGE is extremely dated and not recommended.
regarding the licencing;
http://www.blender.org/support/faq/
you can of course still create interesting things with the Game engine part of Blender but to get interesting results, knowledge of python and writing glsl shaders is an absolute must.
https://www.youtube.com/watch?v=bq9Tf_F-h2I
https://www.youtube.com/watch?v=BGqyvX4P6Pg
https://www.youtube.com/watch?v=ZDNcOy8N9Uo
https://www.youtube.com/watch?v=6JppCrGgMHs
https://www.youtube.com/watch?v=j9S2fsnCrwk
https://www.youtube.com/watch?v=4Cc_4Rko7Q0
Anyway, as mentioned already, the Blender Game Engine is a functional game engine, but very, very dated. It's probably not really worth your time.
Instead, you'd probably be more productive setting up a good workflow between Blender and Unity, as they work together quite nicely.
"As always, I'm surprised at the number of people that didn't even read the OP question.
Anyway, as mentioned already, the Blender Game Engine is a functional game engine, but very, very dated. It's probably not really worth your time."
You, sir are underestimating the greatness of this program. Even though programs like Maya are newer-gen and make the models look better, Blender has been around longer, is free, and you can work more accurately with it. Just think of the comparisons between Macs and PC. The fact that it is free and in the Steam store (ALSO FOR FREE) makes it easier in case you lose Steam and need to redownload all your programs.
Before that, we did answer the OP questions. Next time, read and understand why we included this info..
UPDATE: I did extra research. It has a game engine. In my opinion, a free engine is better than no engine. :P