Here is an educational kit that allows your kids to make their own video games and play them. Bloxels has 250 colorful blocks and a game grid. You just have to snap a picture of it with your smartphone to import your design into the app and develop your game further.
You can use Bloxels to create environments and rules with the physical pixel grid and the app. When your app is done, you can share it with others. The above video shows how this works.