At the DEMOfall 08 conference today, Sim Ops Studios debuted a free tool for creating 3-D games online in a web browser, called Wild Pockets. It gives a casual users, the tools needed to build rich and interesting games online, and share them with family and friends.
The web based game creation tool allows you to create a game by dragging and dropping objects into a 3-D world editor. There is a large library of objects and environments to choose from, including some basic primitives to particle systems. There is also an option to import images in the editor from your computer or the web.