A game engine is an underlaying framework that games are built on that provides all the premade components for how a computers makes all the 3d objects and how they all interest, from the textures to the AI that handles how the NPCs move around a world, even down to how the networking is done for online games.
Games that use the same engine tend to have a similar feel, if you’ve played The Elder Scrolls or more recent Fallout games, they’re using the ‘Creation’ engine, which is notorious for having very odd/rigid NPC movement and character interaction, along with sometimes hilarious game physics.
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