computer programs? Are you talking about game engines? I'm pretty sure they have several of those and other programs for different types of games. Of course, all of those are in-house; meaning, those programs are not available anywhere else. A lot of developers create their own engines, but some of them use other game engines such as Unreal Engine, but they have to pay for those. Nintendo's engines are only for Nintendo first and second party developers only.
There are different ways to create games, but it's not easy. For example, you can create 3D polygonal characters using May or Lightwave. The only problem is that those programs are crazy expensive ($1,500+ for Lightwave), and they are for animation mostly. If you want to make a character with detail and something that is only yours, you would need to customize it using other programs such as Photoshop for design and Zbrush for adding detail to your creation in real time.
All of those are programs available to the public, but they are crazy expensive each, and if you don't know how to use them, then you're going to have a lot of trouble. I would say Photoshop is the easiest to use, but you may need more programs and presets. That's why game companies make their own game engines, so that they don't have to create everything from scratch and can be use for many different types of games. There are free programs, but for the most part, they lack complexity and creation tools. If you want to try and make games using something like Lightwave, then you would also need to know physics for actual rendering and ridging, not to mention, animation.
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When elgato says "from scratch", he's referring to writing compiled code in any text editor, such as C or C++, with some assembly. The official SDK uses CodeWarrior's sophisticated text editor. Game "engines" let the designers work in scripting and markup languages.
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