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Scratch is designed to help young people (ages 8 and up) develop 21st century learning skills. As they create and share Scratch projects, young people learn important mathematical and computational ideas, while also learning to think creatively, reason systematically, and work collaboratively.

Scratch is a new programming language that makes it easy to create your own interactive stories, animations, games, music, and art -- and share your creations on the web. Scratch is designed to help young people (ages 8 and up) develop 21st century learning skills. As they create Scratch projects, young people learn important mathematical and computational ideas, while also gaining a deeper understanding of the process of design.

Plenty of tutorials to help you get started with Scratch

Free software lets students design games in Flash or iOS modes. Games can be tested in iDevices or in Stencyl Lite software (Mac only for testing software; all platforms for design). Subscription allows submission to iTunes store. Built on Scratch.

Scratch-like tool from MIT lets students create their own mobile apps!