3D Game Engine:
Unity 3D or Unreal Engine 4... both top tier 3D Engines with cheap or free options
2D Game Engine:
Game Maker... inspite of the bad name some people gave it, it seems to be a very capable game engine for 2D games
And many, many others. For mobile games, Java on Android is a fairly good place to start, so it's worth mentioning JMonkeyEngine (for 3D) and libgdx (mainly for 2D). Python is good for beginners and that has Panda3D. I don't think either C++ or Javascript are suitable for beginners.
Gimp... the free alternative to PS. Can do almost everything PS can do by now, its rough around some edges but still quite capable
Gimp development seems to be a bit stagnant lately, with things like 48/64-bit colour support and the GTK3 support (needed to make the icons a sensible size on high DPI displays) being long overdue. Neither of these are show stoppers for game development though. There seems to be quite a buzz about a new free image editor lately, called Krita. I think it works in quite a different way, might be worth a look.
Speaking of working in a different way, there's the excellent Inkscape for vector graphics.
Programming:
Depends on the Language and Engine you use. Unity for example is package with the MonoDevelop IDE for C# and Unityscript development, but you can also use a different IDE or Editor.
Visual Studio... the MS IDE, used most for C++ and C# / .net development AFAIK. Quite capable as far as I could tell during my short use of it some years ago. The express version is a free download on the MS page
Eclipse... Industry standart Java IDE AND opensource, thus free download. If you do Java or web development, check out Eclipse first
For Mac there's XCode, but I think you need to be working in Objective C or Swift to get the most out of it. For Java, try IntelliJ IDEA instead of Eclipse. Google's IDE for Android is now based on IntelliJ instead of Eclipse.
Game Design:
Microsoft Office suite, 'nuff said... learn to use Excel, it is your friend. MS now has subs that aren't too expensive, I got my license some years back and it was 3 installs for 100 bucks, not too bad. Of course that install was missing Outlook and Visio, which I now regret as my Thunderbird Mail Client is somehow buggy as hell and Visio is always nice to have as an engineer of any trade...
If you look for a free alternative, check out openOffice... haven't used it in years, but was pretty capable back then. Just be aware that if you exchange documents with MS office users, you will face formatting errors in both directions from time to time (but its not like different versions of MS office are 100% compatible... really, MS just wants to keep their users upgrading by constantly breaking compatibility times and times again... I will get my foil hat now)
OpenOffice was forked to create LibreOffice when there was a disagreement between its developers and Oracle, and LibreOffice has been the preferred option ever since. OpenOffice regained some credibility when it was handed over to the Apache Foundation, but LO is still ahead.