A game engine is a software libary or framework that renders 3d scenes realy fast. Game developers using an engine only create the objects(aka assets) the game needs out of polygons and pass them to the engine, the engine then calculates all the shades, shadowws, physics and color of surfaces and prints them on your screen.
Many modern engines have lots of more features, they are editors for code and assets and you can create animations and quests and all that in the editors of the engine.
But the pure engine is just the computing graphics part.
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