Yes it can, but it would only be one of the tools in your arsenal most likely. I’m not a game developer but I would suspect you would need a game engine like unity to do what you want. It possibly could be done in Flash as well, I’m not sure exactly what you want to do. But Blender is definitely a tool that you want in your arsenal, and I personally think of it as the starting point for all 3d work.
Blender is the most versatile 3d tool I have ever found.
Of course I am a blender fan, I’m sure max, maya, and lightwave users feel the same about their tools. But Blender I think is unique because it doesn’t hold your hand as much. To get something accomplished in Blender, you almost need to understand how it works, not just how to use it. As a result you truly begin to learn 3d itself, not just an application. The learning curve for this industry is extremely long though, don’t try to learn Blender just for one project, it’s not worth it. But if you want to learn this business, then having a project you are trying to accomplish is a great way to get started imo.
Welcome to the forums.