Since february 2008 the Blender Game Engine is back in development. It started with developer Benoit Bolsee systematically tackling all bugs, bringing the open issues in the GE from about a 100 back to less than 10!
This increased stablity allowed the Apricot team to adopt the BGE as a delivery target as well. Brecht van Lommel did a lot of work on well integrated Blender Material and multi-texture support, Campbell Barton provided dozens of fixes and improvements for interaction editing, python and joystick support, and Benoit Bolsee improved the logic (with states) and ensured GE character animation support is fully up-to-date with Blender's own features.
On top of that, Bullet developer Erwin Coumans helped integrating his physics library better, supporting now advanced real-time soft bodies too.
Read here the other release log pages about the GE updates:
GLSL Materials
Logic in Apricot's game
Bullet Soft Body
An extensive list of of svn logs on GE logic can be found in wiki.
