$12256 / $11500
Game Development isn't just about coding. We will also have to decide which additional tools to use.
I would suggest using git as VCS (probably creating a repository on github, as i don't think the size will exceed the 300 mb limit in 48 hours) and using CMake for makefile generation. What are you thinking about which tools we should use?
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As long as it's compatible.. So no sketchup.
I'd say:
3d: Blender 2.56
2d: Gimp and inkscape, photoshop if necessary
Sound: Whatever the artists preferes, artists create their own work anyway..
300 MB is no problem, as long as we don't include our dependencies as well. We don't have time to make changes to things like SDL anyway..
If we go 2D, I would strongly recommend that we also use Tiled, which can handle both square and isometric map tiles. This way we can split part of the team off to do level design work and know that the levels we get will be in a format that we can read.
For the record, I'm leaning toward 2D, although as I said I'll leave the final decision for after they announce the theme. For the time being, I think we ought to plan for either contingency.