The episode details the capabilities of the Glacier Road game engine, specifically highlighting its advanced rendering, animation, physics, AI, and audio systems. It emphasizes the engine's sophisticated features for realistic facial animation, incorporating motion capture, blend shapes, and facial rigging. The text also outlines various software and proprietary tools utilized for aspects like character rigging, level design, asset management, and performance optimization, ultimately emphasizing the engine's continuous evolution and robust toolset for game development.