So far I think I've heard XNA can do 3D games. But if anyone here develops 3D games, what do you use?
I love 2D, but a lot of my ideas are better done in a third dimension.
XNA can indeed do 3D. As can GameMaker (but is very limited). Just remember that the extra dimension quadruples the amount of work.
If i'm fiddling around with 3D, i use Unity3D
3 (version 3, that is). Just google unity.
It's powerful, and has a nice interface. Oh, and it's free, as long as you can stand the splash screen and a few missing functions. You can alo purchase packs that allow you to develop for iPhone, Wii and i think android is coming out soon