Gendai Games have released an on-application-only alpha of their GameSalad game creation tool.
Resources to use during game creation are hosted online, and can be dragged-and-dropped into place. Whilst GameSalad is currently only compatible with the Mac OS platform the games it creates are playable online and on the iPhone.
The “YouTube for Games” idea that YoYo Games wanted to follow is part of their plan, as well as allowing game creators to monetize games – something which YoYo Games has yet to do.
Mashable conducted an interview with Gendai’s Yoshi which can be seen below: