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Yes, RPGM games and RPG hybrids are allowed! Check out some of the previous entries from last year, as several of those were made in RPGM.

If you intend for reading to be a focus then you should be fine.

Great, thank you for clarifying!!

Just to piggyback, would other hybrids be allowed? I'm feeling a bit ambitious and feel like my strongest idea would benefit from some short PSX-style sequences, with conversation and story still moving along visual novel-style. Would a survival horror/visual novel hybrid also be allowed, as long as it still fit the other criteria?

Yes, VN hybrids are allowed as long as it can still be called a visual novel. The gameplay should enhance the visual novel parts rather than the visual novel parts being tacked on to a game. An example of this would be like Ace Attorney, where it has point-and-click segments that enhance the story rather than being the focus- Ace Attorney's story can stand alone without the gameplay.

Perfect, thanks for quick reply!

if this is the case could someone catch the person who commented on the earliest submission and tell them that? i'm just using google translate to see what they're saying but they're telling the submitter that they can't use RPG Maker.

although again it's google translate so it might be wrong, if so then just ignore this.