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Ok let me make clear this one point first: I have trouble if details are shortcoming, so when I looked on youtube for tutorials regarding unity3d I was frustrated because somethings weren't so obvious for one reason or another.
that said, which is a better engine for learning to make a game? preferably similar to LoZlttp, action-rpg style with 3d elements to it. I'm just looking to start learning as a hobby for the summer, and maybe further on.
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Unity is better. The scripting language and tool in Unreal are not so hot. There are some other good engines to learn from, but you have to pay for them. Such as the BigWorld engine, Hero Engine, and Crytek Engine.
ok, well so far I know how to layout a surface, put grass and trees on it, shape it for mountains and valleys(sorta) and after fiddling around I figured out how to enable fps controls onto the main camera. as far as other models I assume blender for making characters and objects?
With Unity is much much easier to aquire art assets. The UDK comes with fewer art assets and it's slightly more difficult to get new ones.
Never trust a screenshot or a youtube video without a version stamp!