The Loving Couple's 8bit Action/RPG

[Kitsu]

I... am not certain at this point. I am thinking maybe either Stencyl (when it comes out) or Game Maker, but I am unsure as to if either can support mode 7, scale, and rotation effects. :/

Registered GameMaker can do scaling and rotation right off the bat. Mode 7 takes a little more, but I've seen it done before.
Un-registered GM can't do scaling or rotation in-game; it has to be done before-hand (you should be able use the built-in image-editor for that, if you wanted to). Un-registered can't do mode 7 though, as far as I know, anyway...

I'm not too sure about Stencyl.

BTW, these sprites are awesome!