update, video: http://vimeo.com/13055285
I love the good old radiosity. 
This is a small project. All lights baked and there is no light in the scene!
Maybe you dont believe but this can run on very small hardware like an iPhone.
The toon shader is a small old trick that I have learn from the very first BGE demos from Blender company: duplicate all geometry, flip normals and use alt+s to “fatten” the models then make the material black.
So the screens: http://etyekfilm.hu/house_bge/
that look pretty neet. for an iphone game that would look great.
as for the outline, did you get the method from that skating game from bge files on there site? thats where i have seen it and used on my games too.
great
Beautiful. I’m also using good old radiosity in baked lightmap for Unity.
ps. The floor and tiles textures look gorgeous
That’s really beautiful 
Lovely, I really like the shader and colour palette
it already looks better than DS graphics, maybe even PSP.
really nice!
Endi, the master of radiosity
What version of Blender did you make this with? I thought radiosity was dropped in the newer versions?
Either way it looks great, I prefer it without the toon outlines like how you have it in the video. The textures look amazing!
AD-Edge: The radiosity was dropped from 2.5 and will not come back.
According to commits from the last month or so, you can bake the new GI.
this is nice realtime 3d.