This thread is stupid.
A videogame is a computer simulation. The only reason people call them 'games' is because they're fun. All something needs to be a game is interactivity. No story, no sounds, no graphics, nothing, just interactivity. Boring game, but that's what it is.
This is a game with a level editor like Irock is saying, it's true. Atmosphir is not a game development platform, but as a game it looks fun. Definitely a rival to Lego Universe.