Very good idea! You should submit this to the Experimental Gameplay Workshop for the next IGF, or another such event.
IGF stuff is unfortunately US-only :/ But your idea looks interesting, I'll check that out to see if it wors as expected.
There are no country limitations for the EGW, which is not part of the IGF but rather a single session at GDC proper. Games from other countries have been shown before, and selections seem to be purely on the basis of personal judgment from a couple people. I agree, this fits the EGW and seems to fit Sense of Wonder, too. Mark next year's on your calendar.
This is a cool idea. I think the most important part of it is the touch/"game feel" of using a real candle. I'm sure there would be times where molten wax would drip onto your hand. That would be a cool thing to experience while playing a game.
The game looks appropriately medieval, and although it's hard to tell from the video, it does seem a little plain looking. It'd be great to see more images.
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